SBP maintains policy rate at 10.5pc

The State Bank of Pakistan (SBP) on Monday maintained its key policy rate at 10.5 per cent.

This comes after Pakistan started feeling the impact of the US-Israel war against Iran, which resulted in the closure of the Strait of Hormuz, causing fuel prices to increase.

Internationally, Brent is on track ‌for a record one-day gain, while gold fell 2pc as escalating geopolitical tensions are putting particular pressure on world energy supplies.

Prime Minister Shehbaz Sharif is expected to unveil an austerity plan on Monday in view of the global fuel crisis.

Last week, the government increased the prices of petrol and high-speed diesel by Rs55 per litre, the highest-ever such hike, as the country felt the first direct economic impacts of the ongoing regional conflict.

The State Bank maintained its key policy rate at 10.5pc during its last meeting in December as well.