State Bank of Pakistan Raises Interest Rate to 12%

KARACHI: The State Bank of Pakistan (SBP) has increased its policy interest rate from 11.5 per cent to 12 per cent, announcing a 50-basis-point hike in its latest monetary policy decision.

Speaking to the media, SBP Governor Jameel Ahmad said the Monetary Policy Committee (MPC) had decided to raise the policy rate by 50 basis points to 12 per cent in response to rising inflationary pressures.

The governor said nine out of the 10 members of the Monetary Policy Committee voted in favour of the 50-basis-point increase.

He attributed the decision to inflationary concerns, adding that the recent increase in oil prices had also affected the inflation outlook.

According to the governor, higher oil prices were contributing to rising inflation, prompting the central bank to increase the policy rate.

The latest decision reflects the SBP’s efforts to address inflationary pressures through monetary policy measures.