The State Bank of Pakistan kept its benchmark policy rate at 11.5% at its September 14, 2026, meeting, marking a third consecutive meeting without a change and matching expectations from most Bloomberg-surveyed analysts. The Monetary Policy Committee voted seven to ten for the decision. Headline inflation rose to 11.1% year over year in August from 9.2% in July, while core inflation was 8.7%, as intensified conflict in the Middle East lifted global commodity prices and disrupted supply chains. External-account pressures remained contained through robust workers’ remittances and higher financial inflows. Foreign-exchange reserves reached $21.4 billion after Pakistan raised $3 billion through Eurobonds in September. Economic activity showed signs of recovery in July, although large-scale manufacturing output fell 3.5% in June and cumulative fiscal 2026 growth stood at 5.0%. The central bank expects real GDP growth of 3.5% to 4.5% in fiscal 2027 and said the current policy stance remains appropriate for guiding inflation toward its medium-term target range of 5% to 7%. Private-sector credit grew 13.4% year over year through August 28.