{"id":5354,"date":"2026-04-27T05:49:59","date_gmt":"2026-04-27T05:49:59","guid":{"rendered":"https:\/\/ventil.rs\/blog\/business\/sbp-raises-monetary-policy-rate-by-100bps-to-11-5-the-express-tribune\/"},"modified":"2026-04-27T05:49:59","modified_gmt":"2026-04-27T05:49:59","slug":"sbp-raises-monetary-policy-rate-by-100bps-to-11-5-the-express-tribune","status":"publish","type":"post","link":"https:\/\/ventil.rs\/blog\/business\/sbp-raises-monetary-policy-rate-by-100bps-to-11-5-the-express-tribune\/","title":{"rendered":"SBP raises monetary policy rate by 100bps to 11.5% | The Express Tribune"},"content":{"rendered":"


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State Bank of Pakistan. Photo: File <\/p>\n

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In a move that defied market expectations, the State Bank of Pakistan\u2019s (SBP) Monetary Policy Committee (MPC) announced a sharp 100 basis point increase in the policy rate, raising it to 11.5%, effective April 28, 2026. The decision, revealed after the MPC meeting held earlier today, caught analysts off guard.\u00a0<\/p>\n

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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.<\/p>\n

\u2014 SBP (@StateBank_Pak) April 27, 2026<\/a><\/p><\/blockquote>\n<\/div>\n

Arif Habib Limited (AHL) had published a detailed preview arguing forcefully for maintaining the status quo at 10.5%. “Given the supply-driven nature of current inflationary pressures, responding with tightening risks a policy error,” AHL had noted, pointing to transient base effects and contained core inflation.<\/p>\n

Arif Habib Limited acknowledged that “calls for tightening have gained some traction, particularly around IMF considerations,” but maintained that at 10.5%, policy was already in restrictive territory. Their survey showed only 17% had predicted a 100 bps hike, with 61% expecting no change.<\/p>\n

The SBP\u2019s move signals a decisive pivot, prioritising inflation anchoring over near-term growth support, even as the economy posts a 3.89% GDP expansion in Q2 and a $1.07 billion current account surplus in March.<\/p>\n

The next MPC meeting in June, alongside the federal budget, will now be watched closely for any signs of reversal\u2014or further tightening.<\/p>\n

Earlier in March<\/a>, the SBP maintained its policy rate unchanged at 10.5% following its meeting on March 9.<\/p>\n

The cautious pause in March was seen as support for ongoing macroeconomic stability efforts, building on prior rate reductions (including the 50 bps cut to 10.5% in December 2025), while allowing time to monitor energy price dynamics, domestic inflation trends, and external account resilience.<\/p>\n

The SBP emphasised in its previous many PMC statements a balanced approach to safeguarding price stability while nurturing sustainable growth recovery.<\/p>\n<\/p><\/div>\n