Please
refer to BPRD Circular No.7 dated 20th April 2009 and
DMMD Circular no.1 dated 15th August 2009. Following changes
are announced with reference to these circulars:
1.
Existing SBP 3-Day Repo facility against Government
of Pakistan Market Treasury Bills and Federal/Pakistan
Investment Bonds has been renamed as “SBP Overnight
Reverse-Repo Facility”. This will serve as the
"Ceiling" for the Interest Rate corridor as
announced by the referenced circular. Please note that
the tenor of this facility is now overnight.
2. The SBP Overnight Reverse-Repo (Ceiling)
rate has been reduced from 14.0% to 13.0% p.a.
3. The newly introduced “SBP
Overnight Repo facility” will be available at
10.0% p.a. This will serve as the "Floor"
for the Interest Rate corridor as announced by the above
referenced circular.
4. Hence, the Floor and Ceiling levels
for the interest rate corridor are 10% and 13% p.a.
respectively (i.e. width of 300 bps).
5. Above changes are effective from
17th August 2009.
6. Other instructions on the subject
shall, however, remain unchanged
Please acknowledge receipt.