Key Points
- Policy rate raised by 100 basis points to 11.50pc
- Decision taken at Monetary Policy Committee meeting on April 27
- New rate effective from April 28, 2026
- The move reflects a tighter monetary stance to address inflation risks
ISLAMABAD: The State Bank of Pakistan has raised its benchmark policy rate by 100 basis points to 11.50 per cent, signalling a tightening of monetary policy as authorities respond to inflationary pressures in the economy.
The decision was taken at a meeting of the central bank’s Monetary Policy Committee on April 27, according to an official announcement.
The revised rate will take effect from April 28, 2026.
The policy rate is a key instrument used by central banks to influence borrowing costs, credit conditions and overall economic activity. An increase typically raises interest rates across the financial system, dampening demand and helping to contain inflation.
Pakistan has faced persistent inflation and external sector pressures in recent years, prompting policymakers to rely on monetary tightening alongside fiscal measures to stabilise the economy.
The latest rate hike suggests the central bank remains focused on anchoring inflation expectations and maintaining macroeconomic stability, even as it balances the need to support growth.
Further details, including updated inflation and growth projections, are expected in the State Bank’s full monetary policy statement.
