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

The central bank has raised its policy rate by 50 basis points to 12 percent, according to Investify. A policy rate is the benchmark interest rate a central bank sets to influence borrowing costs across the economy; changes to it typically filter through to lending and deposit rates over time. A 50-basis-point increase is equivalent to half a percentage point.

The move matters for markets because policy rates shape the cost of credit and the relative appeal of different assets. Higher rates generally mean more expensive borrowing for households and businesses, and they can affect bond yields, currency dynamics and equity valuations, though the timing and size of those effects vary. For savers and borrowers alike, the direction of the policy rate is a key input in financial planning.

What to watch: the central bank's accompanying commentary, which may signal whether further adjustments are possible, and how commercial banks pass the change through to their own rates. Investors should also monitor incoming inflation and growth data, since these typically inform future policy decisions. The headline figure alone is a starting point — context around the decision often matters as much as the number itself.