State Bank’s MPC keeps policy rate unchanged at 10.5%

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has decided to keep the policy rate unchanged at 10.5 percent, reported 24NewsHD TV channel.

The decision was taken at a meeting of the Monetary Police Committee held in Karachi on March 9 (Monday), 2026.

The development comes amid fluctuating oil prices and the widening Middle East conflict, creating uncertainty around inflation and limit potential for monetary easing.

The State Bank held the policy rate at 10.5% in January and reduced the benchmark rate by a cumulative 11.5% points since mid-2024, down from a record high of 22%.

The decision was in line with market expectations, which anticipated the SBP to maintain the status quo in the wake of escalating geopolitical tensions in the Middle East, which have swelled energy prices, raising fears of a new wave of inflation.

Reporter Ashraf Khan