SBP raised its policy rate by 50 bps to 12% at its third MPC meeting of FY27.

The State Bank of Pakistan increased the policy rate to 12%, matching market expectations. Higher benchmark rates generally impact banking sector asset yields and interest income.

Possible impact on PSX shares

• UBL United Bank Limited▲ Could be positive

  A 50 bps hike in the policy rate may support returns on interest-earning assets and sovereign securities for large commercial banks like UBL.

  Price when this was written: Rs 407.85 · Live price, chart and results

• MCB MCB Bank Limited▲ Could be positive

  MCB's core earnings could benefit from improved yields on floating advances and government papers following the rate increase.

  Price when this was written: Rs 373.08 · Live price, chart and results

• HBL Habib Bank Limited▲ Could be positive

  The move to a 12% policy rate could enhance interest income across HBL's sovereign debt portfolio and floating-rate loan book.

  Price when this was written: Rs 282.12 · Live price, chart and results

• MEBL Meezan Bank Limited▲ Could be positive

  Meezan Bank could experience higher returns on its floating-rate financing portfolio and sovereign Sukuk holdings.

  Price when this was written: Rs 521.57 · Live price, chart and results

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Business Recorder: SBP hikes policy rate to 12%