Pakistan, April 27 -- State Bank of Pakistan has announced a new monetary policy decision, increasing the policy interest rate by one percentage point to 11.50 percent. Previously, the benchmark rate stood at 10.50 percent, but the central bank decided to tighten monetary conditions in response to prevailing economic pressures. This move reflects the bank's continued effort to stabilize the economy and manage financial risks through monetary policy adjustments.

The increase in the policy rate means borrowing costs across the economy are likely to rise in the coming months. As a result, commercial banks may adjust lending rates for businesses and consumers, which could make loans for investment, housing, and business expansion relatively ...