The State Bank of Pakistan has decided to keep the policy rate unchanged at eleven percent. 

The decision was made at the meeting of Monetary Policy Committee in Karachi on Monday.

According to a press release issued by the State Bank of Pakistan, the Committee noted an increase in inflation in May to 3.5 percent year on year in line with its expectation, whereas core inflation declined marginally.

Meanwhile, inflation expectations of both households and businesses moderated and the inflation is expected to trend up and stabilize in the target range during current year.