Central bank raises policy rate by 50 basis points
Why This Matters
Key context: <p>The State Bank of Pakistan (SBP) on Monday raised the key policy rate by 50 basis points to 12 per cent.</p> <p>Previously, the SBP’s policy rate was 11.5pc.</p> <p>The SBP has <a href="https://www.dawn.com/news/2018718"><u>held</u></a> the rate steady since <a href="https://www.dawn.com/news/1995495"><u>raising</u></a> it by 100 basis points in April in response to rising global energy prices and supply chain risks — its first increase in nearly three years.</p> <p>Before that, the central bank had maintained the rate at 10.5pc in <a href="https://www.dawn.com/news/1969163"><u>January</u></a> and <a href="https://www.dawn.com/news/1980133"><u>March</u></a> after a surprise <a href="https://www.dawn.com/news/1961265"><u>50bps cut</u></a> in December 2025.</p> <p>The SBP has cut the key rate by a cumulative 1,050 basis points since <a href="https://www.dawn.com/news/1839147"><u>mid-2024</u></a>, from a <a href="https://www.dawn.com/news/1761853"><u>record 22pc</u></a> reached in June 2023, as inflation cooled sharply from multi-decade highs.</p> <hr /> <p><em>More to follow</em></p> This development from dawn.com highlights ongoing changes in the sector.
The State Bank of Pakistan (SBP) on Monday raised the key policy rate by 50 basis points to 12 per cent. Previously, the SBP’s policy rate was 11.5pc. The SBP has held the rate steady since raising it by 100 basis points in April in response to rising global energy prices and supply chain risks — its first increase in nearly three years. Before that, the central bank had maintained the rate at 10.5pc in January and March after a surprise 50bps cut in December 2025. The SBP has cut the key rate by a cumulative 1,050 basis points since mid-2024, from a record 22pc reached in June 2023, as inflation cooled sharply from multi-decade highs. More to follow
Curation & Context
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