State Bank of Pakistan (SBP) raised its key policy rate by a sharp 100 basis points to 11.50% during its third Monetary Policy Committee (MPC) meeting of 2026 amid Iran-US War.
The decision comes against a backdrop of escalating geopolitical tensions in the Middle East, where surging conflict has pushed global energy prices higher, triggering alarm bells over a fresh wave of inflation. With oil prices climbing and uncertainty deepening, the central bank has chosen to act decisively.
Reuters earlier suggested SBP might hold rates steady, though it warned that escalating Iran-US tensions and soaring oil prices could force a policy shift.
