The Presidents/ Chief Executives,
All Commercial Banks/ Primary Dealers
Policy Rate and Overnight Repo / Reverse-Repo
Please refer to DMMD
Circular No. 11 dated March 29, 2019.
Following changes are announced with reference
to this circular:
1. SBP has decided to increase
its ‘Policy Rate’ (Target Rate)
from 10.75% to 12.25%.
2. The SBP Overnight Reverse Repo (Ceiling)
rate will be at 12.75% i.e. 50 bps above
the SBP Policy Rate.
3. The SBP Overnight Repo (Floor) rate will
be at 10.75% i.e. 150 bps below the SBP
4. Accordingly, the Floor and Ceiling levels
for the Interest Rate Corridor are 10.75%
and 12.75% p.a. respectively (i.e. width
SBP will ensure that money
market overnight rate remains close to the
SBP Policy Rate (Target Rate).
Above changes are effective
from May 21, 2019. Other instructions on the
subject shall, however, remain unchanged.