SBP increases policy rate by 100bps to 11.5%

Karachi (Web Desk): The State Bank of Pakistan (SBP) raised its policy interest rate by 100 basis points (bps), taking it to 11.50%.

The increase was approved during a meeting of the central bank’s Monetary Policy Committee (MPC).

The Monetary Policy Committee decided to raise the policy rate by 100 basis points to 11.50% w.e.f 28-Apr-2026 in its meeting held on 27-Apr-2026.

— SBP (@StateBank_Pak) April 27, 2026

The move was broadly anticipated in financial markets, where expectations had already built up for a rate hike amid rising geopolitical instability in the Middle East. 

As per the reports, heightened tensions due to the ongoing conflict, involving the United States (US), Israel and Iran, have led to a sharp increase in global oil prices, which in turn has sparked concerns about a renewed rise in inflationary pressures within the country.

In its previous session on March 9, the MPC had opted to maintain the benchmark policy rate at 10.5%, making the latest adjustment a clear policy shift in response to evolving external and economic conditions.