SBP sets interest rate corridor: ceiling at 12.50%, floor at 10.50% around 11.50% policy rate

KARACHI: The State Bank of Pakistan (SBP) has increased its policy rate (target rate) by 100 basis points to 11.50 percent after the monetary policy committee meeting on Monday.

Under the revised interest rate corridor framework, the SBP Overnight Reverse Repo (ceiling) rate will stand at 12.50 percent, 100 basis points above the policy rate, while the Overnight Repo (floor) rate has been set at 10.50 percent, 100 basis points below it. This places the corridor width at 200 basis points.

READ MORE: SBP revises O/N repo, reverse repo rates

The state bank said it will continue to ensure that the money market overnight rate remains aligned with the policy rate.

The changes will take effect from April 28, 2026, while other existing instructions on the framework will remain unchanged.

Copyright Business Recorder, 2026