KARACHI: The State Bank of Pakistan (SBP) has decided to increase ‘Policy Rate’ (Target Rate) from 11.50 percent to 12.00 percent.
According to SBP, with increase in target rate, the SBP Overnight Reverse Repo (Ceiling) rate will be at 13.00 percent, i.e. 100 bps above the SBP Policy Rate.
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The SBP Overnight Repo (Floor) rate will be at 11.00 percent, i.e. 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 that 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 October 27th, 2026. Other instructions on the subject shall, however, remain unchanged.
Copyright Business Recorder, 2026