State Bank holds the policy rate, and tells markets to watch inflation, not rumours

The State Bank of Pakistan left the policy rate unchanged, a decision that disappointed traders looking for a cut and relieved households still refinancing car and housing loans. The Monetary Policy Committee said food inflation had eased, but core inflation and the external account did not yet justify cheaper money.

What the statement emphasised

Three lines mattered. Remittances remain strong. Import compression is no longer the only story — capital goods are ticking up. And the rupee’s recent calm should not be read as a permanent floor.

What it means for a household

Existing floating-rate loans will not get cheaper this month. Fixed-deposit rates at large banks are likely to stay close to current levels. If you were waiting for a cut before locking a mortgage, the wait continues.