State Bank Raises Interest Rate to 11.50% Amid Economic Uncertainty

Islamabad: The State Bank of Pakistan has increased the interest rate by one percent, setting the new rate at 11.50 percent.

The decision was made during a meeting of the Monetary Policy Committee, where the rate was raised by 100 basis points.

The Monetary Policy Committee decided to raise the policy rate by 100 basis points to 11.50% w.e.f 28-Apr-2026 in its meeting held on 27-Apr-2026.

— SBP (@StateBank_Pak) April 27, 2026

Previously, the interest rate stood at 10.50 percent, which has now been revised upward to 11.50 percent.

Economic experts believe that the key reasons behind this increase include rising tensions in the Middle East and a surge in global petroleum prices, which have contributed to economic uncertainty.

Analysts state that increasing interest rates is a common measure to control inflation, but it can also slow down business activities and increase borrowing costs.

They further noted that higher petroleum prices directly impact the cost of daily necessities, potentially leading to further inflationary pressure.

Experts suggest that the effects of this policy decision will become more visible across different sectors of the economy in the coming months.