Pakistan Raises Policy Rate to 12%: SBP Acts as Inflation Stays Above Target

Pakistan's central bank has tightened again. The MPC raised the policy rate by 50 basis points to 12% on Monday, October 26, effective October 27, ending three straight holds. With September inflation at 10.3% — well above the 5–7% target — the committee said the move was needed to anchor expectations and contain second-round effects from the ongoing supply shock.









