SBP holds policy rate at 10.5%

amid Gulf war
KARACHI
The State Bank of Pakistan (SBP)’s Monetary Policy Committee (MPC) has decided to maintain the policy rate unchanged at 10.5% following its meeting on March 9, 2026. The decision aligns closely with market expectations and recent analyst surveys amid heightened regional geopolitical tensions.
The hold comes as the second MPC meeting of the calendar year 2026, following the January 26 meeting, where the rate was also kept steady at 10.5% despite earlier expectations of easing.

The latest stance reflects caution over potential imported inflation pressures from surging global energy prices, triggered by the US-Iran tensions that have driven Brent crude up sharply to around $108 per barrel. Following the suit, the Pakistani government also increased petrol prices by Rs55 per litre, bringing the new price to Rs321.17 per litre.