State Bank announces latest monetary policy
- By Anjum Wahab -
- Apr 27, 2026
KARACHI: The State Bank of Pakistan (SBP) has announced its latest monetary policy, increasing the key policy rate by 100 basis points to 11.50 percent, citing emerging economic challenges and global uncertainties, ARY News reported.
According to the central bank, the new monetary policy decision comes as inflation, measured by the Consumer Price Index (CPI), stood at 7.3 percent in March 2026, reflecting moderate but persistent price pressures within the economy.
The Monetary Policy Committee decided to raise the policy rate by 100 basis points to 11.50% w.e.f 28-Apr-2026 in its meeting held on 27-Apr-2026.
— SBP (@StateBank_Pak) April 27, 2026
In a positive development highlighted in the monetary policy statement, the SBP reported a current account surplus of $1.07 billion for March, while the cumulative surplus for the first nine months of the fiscal year reached $174 million, indicating improved external sector stability.
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Economic experts attribute the monetary policy tightening primarily to rising global uncertainty, particularly due to tensions in the Middle East, which have driven up petroleum prices. The increase in fuel costs is expected to exert additional pressure on domestic inflation and overall economic activity.
Analysts warn that the monetary policy decision will likely have a direct impact on inflation, as higher petroleum prices typically translate into increased costs for transportation and essential commodities, ultimately affecting consumers.
The SBP emphasized that the monetary policy adjustment aims to maintain macroeconomic stability while keeping inflationary expectations in check amid evolving global and domestic conditions.
At the last monetary policy meeting, the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) kept the policy rate unchanged at 10.5 percent, citing global economic uncertainties driven by the ongoing conflict in the Middle East and rising costs of fuel, logistics, and insurance, ARY News reported.
The central bank highlighted that inflation in Pakistan surged from 5.8 percent in January to 7 percent in February, reflecting growing pressure on households and businesses.
As of February 27, the SBP’s foreign exchange reserves increased to $16.3 billion, signaling improved liquidity. Large-scale manufacturing (LSM) recorded modest growth of 0.4 percent in December 2025, while overall GDP growth for the first half of the current fiscal year (July–December 2025–26) stood at 4.8 percent.