The US Federal Reserve held its benchmark interest rate at 3.5%, 3.75% on 29 April, marking the third consecutive meeting without a change. The decision was widely expected, so markets saw no immediate shock from the announcement. The Fed cited increased risk of inflation rising, driven by higher global energy prices, as a key reason to stay cautious. Holding rates steady is a way of keeping borrowing costs stable while watching how price pressures develop. Higher energy prices can push up inflation broadly, from transport to manufacturing, which gives the Fed reason to avoid cutting rates too soon. For borrowers, this means loan and mortgage rates stay elevated for longer. For investors, it signals the Fed is not ready to ease financial conditions yet. The next move will depend heavily on whether energy-driven inflation pressures build further or begin to ease.
Pakistan's economy grew 3.7 percent in FY2026, its fastest rate in four years, according to the Pakistan Economic Survey presented by Finance Minister Muhammad Aurangzeb. Growth beat last year's 3.18 percent but missed the 4.2 percent target, with floods, regional conflict, and weaker food exports cited as key drags.
The Union government released an additional Rs 1,09,019 crore in tax devolution to states on August 1, 2026, separate from the regular monthly transfer. The lump-sum release aims to accelerate state capital spending in the July-September quarter, with Uttar Pradesh, Bihar, and Madhya Pradesh among the top recipients.
US mortgage rates have risen to a one-year high as markets weigh Federal Reserve rate uncertainty and Middle East conflict-driven inflation fears. Higher rates increase monthly payments for new buyers and are likely to further suppress housing market activity and refinancing.
Pakistan's Sensitive Price Index rose 13.52 percent year on year for the week ending July 2, 2026, marking 45 consecutive weeks of annual gains. Electricity up 49 percent, wheat flour up 68 percent, and LPG up 44 percent year on year are the main drivers.
