KARACHI (HRNW): The State Bank of Pakistan (SBP) has announced its new monetary policy, raising the benchmark interest rate by 1% (100 basis points).
Governor State Bank, Jameel Ahmad, chaired the Monetary Policy Committee (MPC) meeting today. Following the committee’s deliberations, the new interest rate has been set at 11.5%, up from the previous 10.5%.
Key Highlights of the Monetary Policy:
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Third Meeting of 2026: This marks the third monetary policy review of the year 2026. The committee conducted a comprehensive review of inflation trends and volatile oil prices before reaching the decision to tighten the policy.
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Drivers of the Hike: Economic experts attribute this increase primarily to the ongoing conflict in the Middle East, which has driven up petroleum prices and fueled economic uncertainty in the international market.
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Inflation Control: The move is seen as an effort to curb inflationary pressures and stabilize the economy amidst rising global commodity prices.
The central bank indicated that it would continue to monitor global developments and their impact on the domestic economy to ensure financial stability.
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