The Presidents/ Chief Executives,
All Commercial Banks/ Primary Dealers

Dear Sirs/Madam,

SBP Overnight Repo / Reverse-Repo Facilities.

Please refer to DMMD Circular No.1 dated 15th August 2009 and Circular No. 15 dated 10th August, 2012. Following changes are announced with reference to these circulars:

1. The SBP Overnight Reverse Repo (Ceiling) rate has been reduced from 10.50% to 10.00% p.a.

2. The SBP Overnight Repo facility will be available at 7.00% p.a. This will serve as the ‘Floor’ for the Interest Rate corridor as announced by the above referenced circular.

3. Hence, the Floor and Ceiling levels for the Interest Rate Corridor are 7.00% and 10.00% p.a. respectively. (i.e. width of 300bps).

4. In order to dissuade frequent accesses to the SBP Overnight Reverse Repo and Repo facilities, following amendments have been introduced:

5. Above changes are effective from 08th October 2012.

6. Other instructions on the subject shall, however, remain unchanged.

Please acknowledge receipt.