Dawn
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12:53 Apr 27, 2026
The State Bank of Pakistan (SBP) on Monday raised its key policy rate to 11.5 per cent. In its meeting today, the Monetary Policy Committee (MPC) “decided to raise the policy rate by 100 basis points to 11.50pc” with effect from Tuesday, the SBP said in a statement. The hike is the first in almost three years, as rising oil prices from the US-Israel war on Iran threaten to push inflation higher in the import-dependent nation. In its detailed statement, the MPC noted that the “prolonging of the Middle East conflict has intensified risks to the macroeconomic outlook”. “In particular, the global energy prices, freight charges and insurance premiums continue to remain significantly above pre-conflict levels,” it added. The MPC highlighted that supply chain disruptions have contributed to the “prevailing uncertainty”. “While the incoming data has been broadly in line with the MPC’s expectations so far, the impact of these global developments will be visible in key economic indicators going forward,” it forecasted....