KARACHI: The State Bank of Pakistan (SBP) has decided to decrease policy rate (target rate) from 22 percent to 20.50 percent.

The SBP overnight reverse repo (ceiling) rate will be at 21.50 percent, ie, 100 bps above the SBP Policy Rate with effect from June 11, 2024.

The SBP overnight repo (floor) rate will be at 19.50 percent, ie, 100 bps below the SBP policy rate.

First cut in 4 years: SBP reduces key policy rate by 150 basis points, takes it to 20.5%

Accordingly, the floor and ceiling levels for the interest rate corridor are 19.50 percent and 21.50 percent p.a. respectively, ie, width of 200bps.

The SBP will continue to ensure that the money market overnight rate remains close to the SBP policy rate (target rate).

Copyright Business Recorder, 2024