SBP holds policy rate at 10.5% in first 2026 MPC meeting
The committee observed that headline inflation of 5.6% y/y in December 2025 was in line with its expectation. However, core inflation has steadied around a relatively higher level of 7.4% in recent months. Meanwhile, as reflected by the recent high frequency indicators (HFIs), including large-scale manufacturing (LSM), economic activity continues to gain momentum faster than anticipated, mainly led by domestic-oriented sectors.