KARACHI: The State Bank of Pakistan (SBP) on Friday announced overnight repo and overnight reverse repo rates following an increase in the key policy rate to 8.75 per cent.
The SBP said that it decided to increase the ‘Policy Rate’ (Target Rate) from 7.25 per cent to 8.75 per cent.
SBP Overnight Reverse Repo (Ceiling) rate will be at 9.75 per cent i.e. 100 basis points above the SBP Policy Rate.
The SBP Overnight Repo (Floor) rate will be at 7.75 per cent i.e. 100 basis points below the SBP Policy Rate.
Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 7.75 per cent and 9.75 per cent per annum respectively (i.e. the width of 200 basis points).
The SBP said that it will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate).
The changes are effective from November 22, 2021. Other instructions on the subject shall, however, remain unchanged, the SBP added.