State Bank Raises Policy Rate to 11.5% in Latest Monetary Policy Decision

KARACHI: The State Bank of Pakistan (SBP) has announced a key policy rate increase of 100 basis points, raising the benchmark interest rate from 10.5% to 11.5%.
The decision was made during the Monetary Policy Committee (MPC) meeting chaired by SBP Governor Jameel Ahmad. Following the meeting, the central bank officially confirmed the revised policy rate at 11.5%.
This marks the third monetary policy review of the year 2026, during which the committee assessed inflation trends, global economic uncertainty, and fluctuations in oil prices.
According to economic experts, the decision to increase the interest rate has been largely influenced by rising petroleum prices due to ongoing tensions in the Middle East, as well as instability in global markets.
Analysts believe that the central bank aims to control inflationary pressures and stabilize the economy amid external shocks affecting commodity prices and overall financial conditions.