The Presidents/ Chief Executives,
All Commercial Banks/ Primary Dealers
Policy Rate and Overnight Repo / Reverse-Repo
Please refer to DMMD
Circular No. 14 dated May 20, 2019. Following
changes are announced with reference to this
1. SBP has decided to increase
its ‘Policy Rate’ (Target Rate)
from 12.25% to 13.25%.
2. The SBP Overnight Reverse Repo (Ceiling)
rate will be at 13.75% i.e. 50 bps above
the SBP Policy Rate.
3. The SBP Overnight Repo (Floor) rate will
be at 11.75% i.e. 150 bps below the SBP
4. Accordingly, the Floor and Ceiling levels
for the Interest Rate Corridor are 11.75%
and 13.75% 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 July 17, 2019. Other instructions on
the subject shall, however, remain unchanged.