The Presidents/ Chief Executives,
All Commercial Banks/ Primary Dealers
Dear Sirs/ Madam,
Rate and Overnight Repo / Reverse-Repo Facilities
Please refer to DMMD Circular
No. 01 dated 26th Jan 2018. Following changes
are announced with reference to this circular:
1. SBP has decided to increase
its ‘Policy Rate’ (Target
Rate) from 6.00% to 6.50%.
2. The SBP Overnight Reverse Repo (Ceiling)
rate will be at 7.00% i.e. 50 bps above
the SBP Policy Rate.
3. The SBP Overnight Repo (Floor) rate
will be at 5.00% i.e. 150 bps below the
SBP Policy Rate.
4. Accordingly, the Floor and Ceiling
levels for the Interest Rate Corridor
are 5.00% and 7.00% p.a. respectively.
(i.e. width of 200bps).
SBP will ensure that money
market overnight rate remains close to the
SBP Policy Rate (Target Rate).
Above changes are effective
from 28th May, 2018. Other instructions
on the subject shall, however, remain unchanged.