Pakistan, June 13 -- The State Bank of Pakistan (SBP) is expected to keep its interest rate at 12% in its meeting on Monday. Earlier, analysts had predicted a rate cut. But after Israel's recent military strike on Iran, many changed their views. The risk of higher oil prices and global instability raised fears of inflation.

A Reuters snap poll showed that 11 out of 14 experts now expect no change in rates. Only three forecast a rate cut. Analysts believe rising geopolitical tensions will drive up commodity prices, especially oil. This could lead to higher inflation and hurt Pakistan's already weak currency.

Pakistan has struggled with high inflation over the past two years. In May 2023, inflation peaked near 40%. It then dropped but rec...