Pakistan central bank hikes rate 50bp to 12%, first since April, on Gulf conflict-driven inflation

The State Bank of Pakistan raised its policy rate by 50 basis points to 12%, the first increase since April, citing inflation above target due to rising energy costs from the Gulf conflict. This marks a policy reversal after a period of easing, reflecting external price pressures. The hike signals tightening bias and may weigh on growth while supporting the currency.

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