The State Bank of Pakistan (SBP) announced its latest monetary policy decision on March 14, 2026, keeping the benchmark policy rate unchanged at 12%. The decision was widely expected by markets and reflects the central bank's cautious approach as inflation continues to moderate.
Why the Hold?
Headline inflation has dropped to around 5% for the first time in over two years. Food prices have stabilized, fuel costs remain manageable, and the Pakistani Rupee has shown relative stability against the US Dollar. However, the SBP highlighted persistent core-inflation pressures and global uncertainty as reasons for maintaining its current stance.
Impact on Your Finances
- Savings Accounts: Profit rates remain in the 10-12% range — still attractive for risk-averse investors
- Fixed Deposits: Banks offering 12-14% on 1-year term deposits — consider locking in before potential future cuts
- Home Loans: Variable-rate EMIs stay stable. Fixed rates hover around 14-16%
- Consumer Loans: Personal loan rates remain in the 16-20% range
What's Next?
Analysts expect the SBP to begin a gradual rate-cutting cycle in Q3 2026 if inflation remains below 6% and the external account stays stable. For savers, this may be the last window to lock in high fixed-deposit returns.