State Bank Hikes Interest Rate by 100bps to 11.5%

State Bank of Pakistan Increases Policy Rate by 100 Basis Points

The State Bank of Pakistan (SBP) announced on Monday the decision to increase the policy rate by 100 basis points, bringing it up to 11.50%. This move was made during a Monetary Policy Committee (MPC) meeting.

The decision aligns with market expectations that had anticipated such an interest rate hike due to escalating geopolitical tensions in the Middle East. The ongoing Iran war has led to increased fuel prices, raising concerns about inflation.

In its previous meeting on March 9, the MPC maintained the benchmark policy rate at 10.5%.