Business community split over SBP’s decision to keep policy rate unchanged
The State Bank of Pakistan left its policy rate steady, prompting divergent reactions from the business sector regarding growth prospects and financing costs.
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Mixed business reaction to unchanged rate; watch for future policy shifts before taking positions.
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Sectors: Banks, Construction, Automobile, Economy, Markets — Neutral · Watch. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Mixed business reaction to unchanged rate; watch for future policy shifts before taking positions.
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Open on Dawn## SBP’s monetary decision
The State Bank of Pakistan (SBP) announced that it will maintain the policy rate at its current level, citing concerns over inflationary pressures and the need to support macro‑economic stability. The decision was made during the latest monetary policy committee meeting held on 12 September 2026.
## Divergent business reactions
Industry leaders expressed mixed views. Some manufacturers and exporters welcomed the stability, arguing that a steady rate helps them plan capital expenditures and manage foreign exchange exposure. Conversely, representatives from the banking sector and large corporates argued that the unchanged rate limits the potential for monetary easing that could stimulate credit growth and domestic demand.
## Potential implications for the economy
Analysts noted that keeping rates unchanged may curb inflation but could also slow down momentum in sectors that rely heavily on cheap financing, such as construction and automotive. The decision comes amid ongoing geopolitical tensions in the Gulf that affect oil prices and the Pakistani rupee, adding further uncertainty to the economic outlook.
## Outlook for investors
Market participants are advised to monitor upcoming data releases, including inflation trends and trade balances, which will influence future SBP policy moves. The split in business sentiment suggests that investors should adopt a cautious stance until clearer signals emerge from both monetary policy and macro‑economic indicators.