Overnight Reverse Repo rate to be at 9 percent

The State Bank of Pakistan (SBP) has decided to decrease its 'Policy Rate' (Target Rate) from 9.00 percent to 8.00 percent.

SBP Overnight Reverse Repo (Ceiling) rate will be at 9.00 percent i.e. 100 bps above the SBP Policy Rate. The SBP Overnight Repo (Floor) rate will be at 7.00 percent i.e. 100 bps below the SBP Policy Rate.

Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 7.00 percent and 9.00 percent p.a., respectively, i.e., width of 200 bps.

SBP will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate). These changes are effective from May 18, 2020.