State Bank announces new monetary policy, raises interest rate to 11.5%

KARACHI: The State Bank of Pakistan has increased the interest rate by 1 percent in its latest monetary policy decision.

The Monetary Policy Committee raised the policy rate from 10.5 percent to 11.5 percent. The decision was officially announced after the meeting.

According to reports, rising oil prices, inflation pressures, and concerns over the falling value of the rupee had already increased expectations that the interest rate might go up.

The central bank said the step has been taken to help control inflation and maintain economic stability in the country.

With this increase, borrowing is expected to become more expensive, while savings returns may improve for depositors.