The Monetary Policy Committee of the SBP will meet today to review inflation trends, rising fuel and petroleum prices, and the broader direction of monetary policy.

Analysts are meanwhile anticipating a possible increase of up to 1 percentage point in the policy rate, pointing to regional pressures and higher energy costs as key factors.

At present, the benchmark interest rate stands at 10.5 per cent.

The meeting will also assess policy against the backdrop of the ongoing International Monetary Fund (IMF) programme and conditions set by the lending agency.

Business groups, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), have argued that the recent spike in inflation is the result of temporary pressures and does not require an interest rate hike.