SBP Keeps Policy Rate Unchanged Amid Oil Price Fears

The State Bank of Pakistan (SBP) has decided to keep the policy rate unchanged at 11.5%, citing improving economic conditions and concerns over inflationary pressures from rising oil prices.

The decision was made by the Monetary Policy Committee (MPC) during its second meeting of fiscal year 2026-27 and sixth meeting of the calendar year.

Pakistan's external position has improved in recent months, with foreign exchange reserves increasing, a contained current account, and the successful issuance of a $3 billion Eurobond.

However, higher oil prices have raised concerns about inflation, with global prices reaching around $95 per barrel. This has made the SBP more cautious about easing monetary policy at this time.