FX.co ★ Pakistan Hikes Policy Rate in Surprise Move

On April 27, 2026, the State Bank of Pakistan raised its benchmark policy rate by 100 basis points to 11.5%, defying market expectations that it would hold steady at 10.5%. This was the first rate increase since June 2023 and came amid heightened uncertainty over inflation, driven largely by volatile oil prices linked to ongoing tensions in the Middle East. Pakistan’s inflation rate accelerated for a third consecutive month to 7.3% in March, its highest level since August 2024, and moved above the central bank’s 5–7% target range for the first time since October 2024.