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What is the current SBP (State Bank of Pakistan) policy interest rate as of May 2026?

A9.5%
B10.5%
C11.5%
D12%

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Answer and explanation

Correct Answer: C: 11.5%

Explanation: The State Bank of Pakistan raised its benchmark policy rate by 100 basis points to 11.5% on April 27, 2026, the first rate hike since June 2023, surprising analysts who had expected it to remain at 10.5%. The hike was driven by heightened economic uncertainty, volatile global oil prices linked to the US-Iran war, and rising inflation. Pakistan's inflation had risen to 7.3% in March 2026, breaching the SBP's 5–7% target range. The Monetary Policy Committee stated that a tighter stance was needed to anchor inflation expectations and contain the second-round effects of the supply shock

What is the current SBP (State Bank of Pakistan) policy interest ra...