KARACHI: As the State Bank of Pakistan (SBP) has decided to increase “Policy Rate” (Target Rate) from 17 percent to 20 percent, the SBP Overnight Reverse Repo (Ceiling) rate will be at 21.00 percent i.e. 100 bps above the SBP Policy Rate.

The SBP Overnight Repo (Floor) rate will be at 19 percent i.e. 100 bps below the SBP Policy Rate. Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 19 percent and 21 percent p.a. respectively (i.e. width of 200bps).

O/N reverse repo rate will now be 18pc

SBP 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 March 03, 2023.

Copyright Business Recorder, 2023