A central bank has raised its benchmark interest rate by a quarter of a percentage point, bringing it to 1.25%, in a move aimed at addressing growing concerns over inflationary pressures. The decision signals a shift toward tighter monetary policy as officials seek to curb rising price levels that could erode purchasing power and economic stability. Economists suggest the adjustment reflects persistent upward trends in consumer costs, though the bank has not indicated whether further increases are planned. Markets will now closely watch inflation data and economic indicators to gauge the potential for additional rate hikes.
Central bank cites inflation risks as it lifts interest rates by 0.25 percentage points to 1.25%
