SBP hikes policy rate by 0.5% to 12%
Mettis Global • • 1 min read
Pakistan’s Monetary Policy Committee lifted the policy rate by 0.5 percentage points to 12% on October 26, 2026, a move Mettis Global said was anticipated by markets. The SBP said the adjustment was intended to prevent inflation expectations from rising further and to steer inflation towards its 5-7% goal.
The central bank cited September inflation of 10.3% and persistent pressure from energy costs, wheat supply problems and the Middle East conflict. It kept its FY27 growth outlook at 3.5-4.5%, while Governor Jameel Ahmed said foreign exchange reserves stood at $21.5bn and could rise to $23bn by December 2026. The MPC also highlighted a first-quarter FY27 current account deficit of $874mn and warned that global commodity prices and geopolitical risks could weigh on the outlook.
At a glance
- The policy rate increased by 0.5 percentage points to 12%.
- September inflation reached 10.3% year-on-year.
- The FY27 growth forecast remains 3.5-4.5%.
Originally reported by Mettis Global
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