To combat rising prices after floods, State Bank holds rate at 11%.

Pakistan – (Special Correspondent / Web Desk) -The State Bank of Pakistan has decided to keep its main interest rate at 11%. This is the third time in a row they have made this choice. Leaders are balancing concerns about rising prices with the need for economic growth.

The central bank had been lowering rates over the past year to help the economy. However, it has now paused at 11% since May. Many business owners are unhappy with this decision and were hoping for a cut.

The bank’s Monetary Policy Committee announced the choice on its website. They promised to share a more detailed explanation of their reasoning soon.

The Pakistan Stock Exchange reacted with mixed feelings. It rose in the morning before the announcement, fell during the day, and then climbed again after the news was official.

A major worry is the recent floods, which have ruined crops and farmland. This damage is expected to make food prices, like those for rice and vegetables, go much higher.

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Business leaders are split on how the floods will affect supplies. Some report delays in shipping and crop losses, while others say the movement of essential goods is still normal.

Last month, the Finance Minister suggested there might be room to lower rates later this year. However, he made it clear that the final decision rests entirely with the central bank.

A survey of financial experts showed that most people expected the rate to stay the same. This was despite calls from industry groups for a cut to boost business activity.

The bank also held rates steady in its July meeting. They were worried that higher energy costs and global tensions could push inflation up again.