Karachi: State Bank of Pakistan (SBP) while announcing monitory policy has decided to maintain 11 percent interest.

Monitory Policy Committee (MPC) of SBP held an important meeting here Monday.

It was decided in the meeting to maintain interest rate for next one and half month keeping in view the economic situation of the country.

A detailed joint communiqu© was issued after meeting wherein all the points and decisions regarding monitory policy have been explained.

According to joint statement inflation ratio surged from 0.3 percent to 3.5 percent. This rise took place due to abolition of base effect of food prices and continuity of basic inflation. The prices of energy are less as compared to previous year due to relaxation in oil prices at global level.

According to statement fluctuation in short term inflation is possible but inflation will stabilize within 7.5 percent target with gradual increase. Inflation can surge due to disruption in supply chain in the face of regional geographical conflicts. Fluctuation is likely in the international prices of oil and other goods.

As per statement inflation will further rise gradually.

According to SBP, certain steps of budget for the fiscal year 2025-26 can scale up trade deficit by increasing imports.