Karachi, Pakistan – Web Desk: The State Bank of Pakistan (SBP) is scheduled to announce its latest monetary policy decision today, March 9, 2026, following a meeting of the Monetary Policy Committee (MPC) chaired by Governor Jameel Ahmad.
The benchmark policy rate currently stands at 10.5%, where it has been held steady since the January 2026 review. Market expectations lean toward continuity, with a recent survey indicating 60% of the business community anticipating no change, 24% forecasting a hike, and 10% expecting a reduction.
This cautious outlook stems from sharp global oil price surges—driven by supply disruptions in the ongoing Middle East conflict involving the US, Israel, and Iran—fueling inflation concerns and limiting room for easing. Brent crude has climbed significantly, raising fears of imported inflation and higher domestic fuel costs in Pakistan.
Analysts note that while headline inflation has remained manageable in recent months, core pressures and external shocks from the regional war could prompt the MPC to maintain a tight stance to anchor expectations and support stability. Previous MPC decisions, including the hold in January, reflected improved growth projections (3.75–4.75% for FY26) balanced against persistent risks.
The announcement, typically accompanied by a statement detailing the rationale and economic outlook, will provide clarity on borrowing costs amid heightened economic volatility from geopolitical tensions and commodity price shocks.
