Karachi: The State Bank of Pakistan (SBP) on Monday decided to keep its policy rate unchanged at 11.5%, as escalating tensions in the Middle East and rising global oil prices heightened concerns over inflation.
The decision was broadly in line with market expectations, with a majority of participants in a poll conducted last week anticipating that the central bank would maintain the status quo.
Global oil prices have come under renewed pressure amid the worsening security situation in the Gulf region. Brent crude futures rose $2.90, or 2.77%, to $107.51 per barrel, raising concerns about higher energy and transportation costs.
The surge in oil prices could pose additional inflationary pressures for oil-importing economies such as Pakistan, potentially increasing the cost of fuel, electricity, transportation and other goods and services.
The SBP’s decision to maintain the policy rate reflects the central bank’s focus on balancing inflation risks with economic growth and financial stability amid heightened external uncertainties.
Market participants will continue to closely monitor developments in the Middle East, global commodity prices and their potential impact on Pakistan’s inflation outlook and external account.