SBP cuts the policy rate by 50 basis points to 10.5%, aiming to support economic activity amid easing inflationary pressures.

The State Bank of Pakistan (SBP) on Monday reduced its key policy rate by 50 basis points to 10.5% with effect from  December 16, 2025.

The decision was taken by the Monetary Policy Committee (MPC) at its scheduled meeting, marking a resumption of monetary easing after the policy rate had remained unchanged for four consecutive meetings.

The latest cut follows a cumulative reduction of 1,150 basis points since June 2024, reflecting SBP’s efforts to balance price stability with support for economic activity.