The Presidents/ Chief Executives

All Commercial Banks/ Primary Dealers

Dear Sirs/Madams,

SBP’s Policy Rate and Overnight Repo / Reverse-Repo Facilities

Please refer to DMMD Circular No. 15 dated September 20, 2021. Following changes are announced with reference to this circular:

1. SBP has decided to increase ‘Policy Rate’ (Target Rate) from 7.25% to 8.75%.
2. SBP Overnight Reverse Repo (Ceiling) rate will be at 9.75% i.e. 100 bps above the SBP Policy Rate.
3. The SBP Overnight Repo (Floor) rate will be at 7.75% i.e. 100 bps below the SBP Policy Rate.
4. Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 7.75% and 9.75% p.a. respectively (i.e. width of 200bps).

SBP will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate).

Above changes are effective from November 22, 2021. Other instructions on the subject shall, however, remain unchanged.