Key facts
- Pakistan's central bank maintained its benchmark interest rate at 11.5%.
- The decision was anticipated by 22 out of 39 analysts surveyed.
- Policymakers are balancing inflation risks from the Middle East conflict with moderating economic activity.
Pakistan's central bank opted to keep its benchmark interest rate steady at 11.5% on Monday. This decision reflects a careful balancing act by policymakers, who are contending with inflationary pressures potentially exacerbated by the ongoing conflict in the Middle East, while also acknowledging a slowdown in the nation's economic activity. The hold was in line with expectations, as 22 out of 39 analysts polled by Bloomberg had predicted no change to the key rate.