Half a point, and a longer road to target
The State Bank of Pakistan (SBP) did what most of the market expected. It raised the policy rate by 50 basis points to 12%, effective October 27. But the headline decision is the least interesting part of the latest Monetary Policy Statement. Two oth
October 27, 2026 (MLN): The State Bank of Pakistan (SBP) did what most of the market expected. It raised the policy rate by 50 basis points to 12%, effective October 27. But the headline decision is the least interesting part of the latest Monetary Policy Statement. Two other changes show how much the Committee's thinking has shifted in six weeks. The first is the vote. On September 14, the MPC held the rate by seve...