State Bank of Pakistan (SBP) on Tuesday issued floor and ceiling rates under the interest rate corridor after the announcement of monetary policy.
The central bank has decided to increase ‘Policy Rate’ (Target Rate) from 20.00 percent to 21.00 percent.
SBP Overnight Reverse Repo (Ceiling) rate will be at 22.00 percent i.e. 100 bps above the SBP Policy Rate.
The SBP Overnight Repo (Floor) rate will be at 20.00 percent i.e. 100 bps below the SBP Policy Rate.
Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 20.00 percent and 22.00 percent p.a. respectively (i.e. width of 200bps).
SBP will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate).
Above changes are effective from Apr 05, 2023. Other instructions on the subject shall, however, remain unchanged.
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