SBP Raises Policy Rate by 50bps to 12% Amid Global Economic Pressures

ISLAMABAD: The State Bank of Pakistan (SBP) has raised its policy rate by 50 basis points to 12% in response to ongoing global economic pressures. This decision was announced during the Monetary Policy Committee’s third meeting of the fiscal year 2026-27, held today.

The increase aligns with market expectations as inflation continues to pose challenges both domestically and internationally. In its previous meeting on September 14, the SBP had indicated the need for a cautious approach to monetary policy, emphasizing the importance of stabilizing the economy amidst rising prices.

This rate hike is expected to have significant implications for consumers and businesses alike, potentially leading to higher borrowing costs and affecting spending patterns. Analysts suggest that while the move aims to curb inflation, it may also slow down economic growth in the short term.

Looking ahead, the SBP is likely to monitor economic indicators closely, with the next Monetary Policy Committee meeting scheduled for early next year. Stakeholders will be keen to see how global economic conditions evolve and their impact on local inflation rates.