The State Bank of Pakistan (SBP) on Monday kept its policy rate unchanged at 11.5%, as rising global oil prices and renewed hostilities in the Middle East fuel concerns over inflation.
The majority of market participants had anticipated a status quo in the policy rate, according to a poll conducted last week.
Some 84% of respondents expected no change, 14% forecast a 50-basis-point increase and 2% anticipated a 100-basis-point hike, The News reported, citing a Topline Securities poll.
Most market participants expected no change in the policy rate, considering sufficient real interest rate gains and improving external finances to offset risks from elevated oil prices.
Interest rate expectations have remained broadly stable since the last monetary policy meeting in July, although risks to the outlook have increased as oil prices have risen and tensions in the Middle East have renewed uncertainty over global energy markets.
International oil prices jumped more than 2% on Monday after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline.
Brent crude futures rose $2.90, or 2.77%, to $107.51 per barrel as of 2313 GMT. WTI futures rose $2.27, or 2.27%, to $102.32 per barrel. Prices had initially risen more than 3% at market open.
