Hike or hold: SBP to announce policy rate today
The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is scheduled to meet today, i.e. Monday, in its third meeting of the fiscal year 2026-27, to review the key policy rate. At its previous meeting on September 14 , the central bank’s MPC, in line with market expectations, decided to keep the policy rate unchanged at 11.5%. “The Committee noted that the recent intensification…
The State Bank of Pakistan's Monetary Policy Committee (MPC) is set to decide on the key policy rate during its third meeting of the fiscal year 2026-27. Following the previous meeting on September 14 where the central bank decided to keep the policy rate at 11.5%, analysts are divided on whether a hike or hold is warranted.
Recent Middle East conflict has driven up global commodity prices, while supply chain disruptions persist. However, domestic macroeconomic data has been broadly in line with MPC expectations. August headline inflation increased to 11.1% year-over-year from 9.2% in July, while core inflation was slightly lower than expected.
Expectations are high for a rate hike. Topline Securities predicts a 50 basis points increase to 12.0%, while Foundation Securities also expects a 50bps hike. However, Pakistan Institute of Development Economics (PIDE) recommends maintaining the policy rate, stating that current conditions do not yet support an immediate increase.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
