THE State Bank’s decision to raise its key policy rate by 100 basis points to 11.5pc signals a shift in priorities from supporting growth to protecting macroeconomic stability, preserving exchange rate confidence, and preventing inflation from becoming entrenched amid risks arising from the Gulf crisis. Coming at a time when inflationary pressures are re-emerging and external vulnerabilities intensifying, the move reflects the assessment that risks to stability now outweigh gains from monetar...