O/N repo, reverse repo rates revised

The State Bank of Pakistan (SBP) Saturday increased its Policy Rate (Target Rate) by 100 basis points to 7.50 percent from 6.50 percent. The SBP Overnight Reverse Repo (Ceiling) rate will be at 8.00 percent, ie, 50 bps above the SBP Policy Rate. The SBP Overnight Repo (Floor) rate will be at 6.00 percent, ie, 150 bps below the SBP Policy Rate.
Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 6.00 percent and 8.00 percent p.a. respectively with a width of 200 bps. According to SBP, it will ensure that money market overnight rate remains close to the SBP Policy Rate (Target Rate). These changes will effective from July 16, 2018.