The State Bank of Pakistan's Monetary Policy Committee (MPC) held the policy rate at 11.5% on Monday, prioritizing stability amidst external risks, particularly the Middle East conflict, despite signs of an improving macroeconomic outlook. Headline inflation eased to 11.1% YoY in June 2026, with core inflation at 8.4%, while foreign exchange reserves stood at $17.3 billion as of July 17. The MPC deemed the current monetary stance appropriate to guide inflation towards the 5-7% target by June 2027. This stability in interest rates could support the PKR by maintaining investor confidence, potentially influencing domestic gold prices which often move inversely to a stronger local currency.
بحوالہ / Source: www.brecorder.com