KARACHI: With the 200-basis points (bps) reduction in the key policy rate, the State bank of Pakistan (SBP)has announced revision in Overnight Repo and Reverse-Repo rates with effect from Dec 17, 2024.
As the SBP has decided to decrease ‘Policy Rate’ (Target Rate) from 15 percent to 13 percent, the SBP Overnight Reverse Repo (Ceiling) rate will be at 14 percent, ie, 100bps above the SBP Policy Rate. The SBP Overnight Repo (Floor) rate will be at 12 percent, ie, 100bps below the SBP Policy Rate.
Accordingly, the floor and ceiling levels for the Interest Rate Corridor are 12 percent and 14 percent p.a. respectively (ie, width of 200bps).
The SBP said that it will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate).
Copyright Business Recorder, 2024
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