The State Bank of Pakistan has increased its interest rate by 50 basis points, with the new interest rate now standing at 13.5 per cent. The raise has been made due to spiralling inflation in the country. The State Bank has made this announcement as part of its new monetary policy for the next two months. According to analysts, the interest rate should have been lowered considering the current economic conditions. However, with the increased interest rate, eyes are now set on the KSE as analysts expect a very critical following day when the market reopens tomorrow morning. Analysts had also earlier changed their stance on a revision in the interest rate by the State Bank, saying the indicators that trigger an increase in the discount rate have not shown any significant upward movement. However, the long term prediction was a 50 to 100 basis point increase in the rate.