Karachi : The State Bank of Pakistan (SBP) has increased its benchmark interest rate by 100 basis points, taking it to 11.50%.
The decision was made in the recent meeting of the Monetary Policy Committee (MPC) of the central bank. Financial markets had widely expected this move, as anticipation of a rate hike had grown due to rising geopolitical tensions in the Middle East.
According to reports, escalating conflict involving the United States, Israel, and Iran has driven global oil prices upward. This surge has raised worries that inflationary pressure may return in Pakistan’s economy.
In its previous meeting held on March 9, the MPC had kept the policy rate unchanged at 10.5%. However, the latest adjustment reflects a clear change in stance, influenced by shifting international conditions and their expected impact on domestic economic stability.
