The State Bank of Pakistan (SBP) has increased the policy rate by 100 basic points to 11.50 percent.
The State Bank announced the decision after a meeting of its Monetary Policy Committee (MPC) which was held in Karachi on Monday.
The Monetary Policy Committee decided to raise the policy rate by 100 basis points to 11.50% with effect from April 28, 2026, said the SBP.
The decision was in line with market expectations, which anticipated the State Bank to raise the rate in the wake of escalating geopolitical tensions in the Middle East, which have swelled energy prices, raising fears of a new wave of inflation.
At its previous meeting on March 9, 2026, the MPC, in line with market expectations, kept its benchmark policy rate unchanged at 10.5%.
