The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Monday decided to keep the policy rate unchanged at 10.5 percent.
The decision aligned with market expectations, as analysts had anticipated that the central bank would keep the policy stance unchanged amid escalating geopolitical tensions in the Middle East. The tensions have pushed up energy prices, heightening concerns about a potential new wave of inflation.
At its previous meeting on January 26, 2026, the MPC surprised markets by keeping the benchmark policy rate unchanged at 10.5%, contrary to expectations at the time.
The Monetary Policy Committee has decided to keep the policy rate unchanged at 10.5 percent in its meeting held on March 9, 2026.
— SBP (@StateBank_Pak) March 9, 2026
For today’s meeting, however, market experts broadly expected the central bank to maintain the status quo, citing rising tensions in the Middle East as a key factor behind the cautious approach.
Meanwhile, oil prices surged more than 25% on Monday, reaching their highest levels since mid-2022. The spike followed supply cuts by some major producers and growing fears of prolonged shipping disruptions.
Energy markets remain particularly anxious as the crisis is unfolding near the Strait of Hormuz, a critical chokepoint through which roughly one-fifth of the world’s oil supply normally flows.
