{
  "id": 16589139,
  "title": "SBP hikes policy rate to 12% on inflation, energy price worries",
  "url": "https://urgent.news/2026/10/26/sbp-hikes-policy-rate-to-12-on-inflation-energy-price-worries",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-26T11:04:39.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40445969/sbp-hikes-policy-rate-to-12-on-inflation-energy-price-worries"
  },
  "original_language": "en",
  "account": "The State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) increased the policy rate by 50 basis points to 12% in response to deteriorating inflation and energy price concerns. Governor Jameel Ahmad cited the US-Iran conflict and Middle East developments as well as rising energy prices, particularly oil staying above $100 per barrel, as key factors for the hike. Nine out of 10 MPC members voted in favor of the rate increase. The previous meeting on September 14 had left the rate unchanged at 11.5%. While headline inflation rose to 11.1% year-over-year in August, core inflation remained slightly lower than expected. Analysts had anticipated a rate hike due to ongoing uncertainty and its impact on energy supply chains. However, some, like the Pakistan Institute of Development Economics, urged the bank to maintain the status quo, citing mixed macroeconomic conditions and moderate inflation moderation.",
  "summary": "The State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) on Monday raised the policy rate by 50 basis points (bps) to 12%, in line with market expectations. The decision was taken at the MPC’s third meeting of fiscal year 2026-27. “The inflation outlook deteriorated significantly because of the ongoing geopolitical crisis, including the US-Iran conflict, and other developments in the…",
  "key_points": [
    "SBP raises policy rate to 12% to combat inflation",
    "Governor Jameel Ahmad cites US-Iran conflict and energy prices",
    "Nine MPC members voted for the rate increase"
  ],
  "editors_take": "Prioritizing inflation control over macroeconomic stability signals that the central bank views rising global energy costs and geopolitical tensions as the primary threats to the nation's economic security.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}