Karachi: Monday 27th April 2026, The State Bank of Pakistan (SBP) has increased its policy interest rate today in response to rising inflation pressures and economic uncertainty.
The Monetary Policy Committee said the decision was taken to control inflation and maintain economic stability in the country. Recent data shows that prices are again rising, mainly due to higher global oil prices, increased import costs, and external economic challenges.
The central bank explained that inflation risks have increased in recent months. To manage these risks, it has decided to tighten monetary policy by raising the policy rate. This step is also in line with market expectations, as many analysts had predicted an increase inflation.
Headline inflation rose to 7.3 percent in March, while core inflation also inched up to 7.8 percent.
Inflation was projected to increase up to the upper bound of the target range before the start of the Middle
East conflict, mainly due to adverse base effect. Subsequently, the energy price shock has led to a surge in fuel
prices, which have already begun to seep into core inflation via transport fares, though contained food
inflation amidst ample supplies is likely to offset some of the impact on headline i
The SBP said future decisions will depend on inflation trends, global prices, and the overall economic situation. The central bank will continue to focus on controlling inflation while supporting financial stability.
Economists believe the move shows that SBP is prioritizing price stability over short-term growth, as Pakistan continues to manage external and fiscal pressures owing to recent geopolitical tensions between USA and Iran.
About the Author
