SBP’s overnight repo rate fixed at 22pc

KARACHI: As the State Bank of Pakistan (SBP) has decided to increase “Policy Rate” (Target Rate) from 20 percent to 21 percent, SBP Overnight Reverse Repo (Ceiling) rate will be at 22 percent i.e. 100 bps above the SBP Policy Rate.

While, the SBP Overnight Repo (Floor) rate will be at 20 percent i.e. 100 bps below the SBP Policy Rate Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 20 percent and 22 percent p.a. respectively with width of 200 bps.

The SBP will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate). The new rates are effective from April 05, 2023.

Copyright Business Recorder, 2023