SBP Raises Policy Rate by 50 Basis Points to 12%

KARACHI: The State Bank of Pakistan (SBP) has decided to raise the policy rate by 50 basis points (0.5 percentage points) in view of the country’s economic situation, bringing changes to borrowing and investment costs.

SBP Governor Jameel Ahmad announced the monetary policy during an important press conference, formally confirming a 50-basis-point increase in the policy rate. Following the increase, the rate has risen from 11.5% to 12%.

According to economic experts, the central bank has taken this step to contain inflationary pressures and help ensure economic stability.