O/N repo, reverse repo rates revised

KARACHI: With reduction in the key policy rate, the State Bank of Pakistan (SBP) has also announced revised overnight repo and reverse repo rate.

As the SBP has decided to decrease ‘Policy Rate’ (Target Rate) from 13.00 percent to 12.00 percent, SBP Overnight Reverse Repo (Ceiling) rate will be at 13.00 percent, ie, 100 bps above the SBP Policy Rate.

In addition, the SBP Overnight Repo (Floor) rate will be at 11.00 percent, ie, 100 bps below the SBP Policy Rate.

Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 11.00 percent and 13.00 percent p.a., respectively (i.e., width of 200bps).

The SBP said it will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate). These changes are effective from January 28, 2025.

Copyright Business Recorder, 2025