SBP raises policy rate by 100 bps to 11.50 per cent

KARACHI: Pakistan’s central bank on Monday raised its key policy rate by 100 basis points to 11.50 per cent, citing the need to address inflationary pressures and stabilise the economy.

The State Bank of Pakistan (SBP) said its Monetary Policy Committee (MPC) took the decision after reviewing the country’s macroeconomic conditions

According to a statement issued on Monday, the new rate will take effect from April 28, 2026, the central bank said, adding that a detailed monetary policy statement would be released later.

Economists said the rate hike was aimed at curbing rising inflation and anchoring economic stability, though it could increase borrowing costs for businesses and consumers.

Higher interest rates are expected to make bank lending more expensive, potentially slowing industrial and commercial activity.

Pakistan’s economy has come under pressure in recent months due to rising global oil prices and external factors, prompting tighter monetary policy measures.