Central bank raises policy rate by 50 basis points to 12pc

The State Bank of Pakistan (SBP) on Monday raised the key policy rate by 50 basis points to 12 per cent. Addressing a press conference in Karachi, SBP Governor Jameel Ahmed said that the Monetary Policy Committee (MPC) had met and reviewed the situation since the last meeting held in September. He said that there were many “underlying factors” behind the decision, especially the inflation outlook. He cited the US-Israel war on Iran and its impact on energy and oil prices, developments in the domestic market and the subsequent impact on inflation. He said that nine out of ten MPC members voted…