SBP holds policy rate at 11.5% in a 7-3 vote as inflation rises to 11.1%

Photo: Asim Iftikhar Nagi / Wikimedia Commons ↗, CC BY-SA 4.0 ↗

KARACHI, September 14, 2026 — The State Bank of Pakistan (SBP) kept its policy rate at 11.5% at its Monetary Policy Committee (MPC) meeting on September 14, 2026. It is the second hold in a row this fiscal year. On September 28, SBP’s website still showed the policy rate at 11.50%, with the overnight repo ceiling at 12.50% and the floor at 10.50%.

The decision was not unanimous. Business Recorder reported the statement as saying the hold was “a majority decision taken by seven out of ten members”. The statement, as reported, does not say what the other three members wanted.

Why SBP held

In the statement, as quoted by Business Recorder, the committee pointed to the Middle East conflict: “the recent intensification of the prolonged Middle East conflict has led to further increase in already elevated global commodity prices, while supply chain disruptions have persisted.”

It said headline inflation rose to 11.1% year on year in August, from 9.2% in July. It also said “external account pressures remained contained, supported by robust workers’ remittances and higher financial inflows.”

The MPC concluded that “the current monetary policy stance remains appropriate to guide inflation towards the target range of 5-7% over the medium term.” It added that uncertainty “has increased, particularly from the worsening geopolitical environment.” SBP expects inflation “to gradually ease towards the upper bound of 5-7 percent target range by June 2027”, but said the risks to that outlook “have increased significantly”.

The statement also listed developments since the July meeting:

• Moody’s upgraded Pakistan to B3 with a stable outlook.
• Pakistan raised US$3bn through Eurobonds.
• SBP’s foreign-exchange reserves rose to “over $21 billion”.
• SBP transferred a profit of Rs1.9 trillion to the government, against a budgeted Rs1.4 trillion.

What changed

• Before: The policy rate was 11.5%. SBP raised it by 100 basis points on April 27, 2026 and held it on July 27, 2026.
• Now: It is unchanged at 11.5%, with the overnight corridor at 10.50%–12.50%.
• Effective: The decision was announced on September 14, 2026. SBP’s calendar puts the next MPC meeting on October 26, 2026.

What it means for savings rates

A hold means SBP has not moved its benchmark. Banks, microfinance banks and wallet providers set their own profit rates on savings, and each can change them separately.

What this means for you Nothing changes automatically in your account after a hold. Check your bank’s or wallet’s current profit rate schedule before moving money, and see how wallet accounts compare on our wallets page.