Central bank raises policy rate by 50 basis points

The State Bank of Pakistan (SBP) on Monday raised the key policy rate by 50 basis points to 12 per cent. Topline Securities said the central bank had raised the policy rate “in line with our expectations”. Previously, the policy rate was 11.5pc. The central bank had held the rate steady since raising it by 100 basis points in April in response to rising global energy prices and supply chain risks — its first increase in nearly three years. Before that, the central bank had maintained the rate at 10.5pc in January and March after a surprise 50bps cut in December 2025. The SBP has cut the key…