The State Bank of Pakistan raised its policy rate by 50 basis points, from 11.5% to 12%, on 26 October 2026. The Monetary Policy Committee voted 9 to 1 for the increase, and the new rate takes effect from 27 October.
The State Bank linked the decision to energy prices. Oil stayed around $100 a barrel, and September inflation came in at 10.3%, higher than expected. Core inflation was about 8.4%. The bank said the increase is meant to keep inflation expectations in check and bring inflation back to its 5–7% target.
What it means if you are buying in DHA Lahore
- If you are paying cash, the policy rate does not change your purchase price or transfer costs.
- If you plan to use a bank home loan, check the current rate with your bank before you agree on a deal. Most variable-rate home loans in Pakistan are priced off KIBOR, which usually moves with the policy rate, so instalments can rise.
- If you already have a variable-rate home loan, ask your bank when its next repricing date is.
The State Bank did not announce any change to housing-finance rules with this decision.
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Source: Express Tribune, 26 October 2026; also The News.
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