KARACHI: The State Bank of Pakistan (SBP) on Friday decided to increase ‘Policy Rate’ (Target Rate) from 15 percent to 16 percent.

Now SBP Overnight Reverse Repo (Ceiling) rate will be 17 percent, i.e., 100 bps above the SBP Policy Rate. While, the SBP Overnight Repo (Floor) rate will be at 15 percent, i.e., 100 bps below the SBP Policy Rate.

Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 15 percent and 17 percent p.a. respectively (i.e. width of 200bps).

SBP raises key interest rate by 100bps, takes it to 16%

SBP said that it will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate). These changes will be effective from Nov 28, 2022. Other instructions on the subject shall, however, remain unchanged.

Copyright Business Recorder, 2022