1. The SBP Overnight Reverse Repo (Ceiling) rate has been reduced from 10.00% to 9.50% p.a.

2. The SBP Overnight Repo facility will be available at 6.50% 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 6.50% and 9.50% p.a. respectively. (i.e. width of 300bps).

4. Above changes are effective from 17th December 2012.

5. In case an eligible institution accesses either of the above facilities more than 7 times during a given quarter, a spread of plus/minus 50bps will be applied over & above the applicable SBP Overnight Reverse Repo & Repo Rates respectively for the remainder of the same quarter. For the current quarter, the 7 instances remain effective from 08th October, 2012 as communicated in DMMD circular No. 20 dated 05th October, 2012.

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