SBP raises rate to 12% amid oil and food price pressures
Economists say energy and food price pressures could keep borrowing costs high, with further gradual increases possible over the next few months if oil stays elevated.
The State Bank of Pakistan raised its policy rate by 50 basis points to 12%.
September inflation stood at 10.3%, with energy and food prices cited as main pressures.
SDPI’s Sajid Amin Javed projects average inflation of 11–13% in FY2026-27 if oil stays elevated.
Further gradual rate increases over three to four months are possible if conflict fears and oil prices persist.
PIDE’s Nasir Iqbal said keeping the rate at 11.5% would have been a more balanced response.