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

Dear Sirs/Madams,

Please refer to DMMD Circular No. 23 dated December 14, 2021. Following changes are announced with reference to this circular:

1. SBP has decided to increase ‘Policy Rate’ (Target Rate) from 9.75% to 12.25%.
2. SBP Overnight Reverse Repo (Ceiling) rate will be at 13.25% i.e. 100 bps above the SBP Policy Rate.
3. The SBP Overnight Repo (Floor) rate will be at 11.25% i.e. 100 bps below the SBP Policy Rate.
4. Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 11.25% and 13.25% p.a. respectively
   (i.e. width of 200bps).

SBP will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate).

Above changes are effective from April 8, 2022. Other instructions on the subject shall, however, remain unchanged.