SBP Raises Policy Rate to 11.50 Percent

The State Bank of Pakistan has revised its benchmark monetary policy framework by increasing the policy rate by 100 basis points to 11.50%, alongside corresponding adjustments to corridor rates under its interest rate corridor mechanism.

Under the updated structure, the overnight reverse repo rate has been set at 12.50%, while the overnight repo rate stands at 10.50%, thereby maintaining a corridor width of 200 basis points. This configuration places the reverse repo rate 100 basis points above the policy rate and the repo rate 100 basis points below it.

The central bank has reiterated its commitment to ensuring that the overnight interbank money market rate remains closely aligned with the policy rate through active liquidity management operations.

These revised rates have been made effective from April 28, 2026. All other operational guidelines and instructions governing the interest rate corridor framework shall continue to remain applicable without modification.