Central BanksMedium•26 October 2026•
1 min read
State Bank of Pakistan Raises Key Interest Rate to 12%
Key Facts
1The State Bank of Pakistan has increased its key interest rate to 12%.
The State Bank of Pakistan (SBP) increased its key interest rate to 12%. Investing.com reported the rate hike as part of the central bank's monetary policy decision announced on October 26, 2026.
The move is aimed at addressing inflationary pressures and stabilizing the national currency. While the significant rate hike may support the currency, it is expected to increase borrowing costs and place pressure on local equities.