Karachi — The State Bank of Pakistan has increased its policy interest rate by 100 basis points, raising it to 11.50%, according to a statement issued after the Monetary Policy Committee (MPC) meeting held on Monday.
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The central bank said the revised rate will take effect from April 28, as part of ongoing efforts to manage inflationary pressures and maintain macroeconomic stability.
The decision marks a shift from the previous stance, as the SBP had kept the policy rate unchanged at 10.5% in March following its meeting on March 9. That pause was widely viewed as a cautious move to support economic stability and assess evolving conditions in inflation, energy prices, and the external account.
Earlier adjustments had also included a 50-basis-point reduction in December 2025, when the rate was brought down to 10.5% to support growth momentum while balancing price stability concerns.
In its previous communications, the central bank consistently emphasized a “balanced approach” between controlling inflation and encouraging sustainable economic recovery. However, the latest hike suggests renewed pressure from price levels and macroeconomic risks.
Analysts say the increase reflects the SBP’s focus on tightening monetary conditions to anchor inflation expectations while managing external vulnerabilities and fiscal pressures.
The Monetary Policy Committee reiterated its commitment to maintaining price stability over the medium term while ensuring that economic growth remains sustainable.
