On Monday, the State Bank of Pakistan (SBP) opted to maintain the interest rate at 22 percent. The announcement, following a meeting of the Monetary Policy Committee (MPC), was delivered by SBP Governor Jameel Ahmed.

He highlighted a 29 percent inflation rate in the previous month, anticipating a decrease in January. Governor Ahmed also disclosed a current account deficit limited to 0.7 percent, emphasizing the improvement in the balance of payments with SBP-held foreign reserves at $8.3 billion.

This decision aligns with the MPC's stance in the preceding December 12 meeting, where they affirmed a positive real interest rate for the next 12 months, foreseeing a downward trajectory in inflation.