KARACHI: The State Bank of Pakistan (SBP) has decided to decrease ‘Policy Rate’ (Target Rate) from 19.50 percent to 17.50 percent.

Accordingly, SBP Overnight Reverse Repo (Ceiling) rate will be at 18.50 percent i.e. 100 bps above the SBP Policy Rate. The SBP Overnight Repo (Floor) rate will be at 16.50 percent i.e. 100 bps below the SBP Policy Rate.

The Floor and Ceiling levels for the Interest Rate Corridor are 16.50 percent and 18.50 percent p.a. respectively (i.e. width of 200bps). SBP will continue to ensure that the money market overnight rate remains close to the SBP Policy Rate (Target Rate).

These changes are effective from Sep 13, 2024. Other instructions on the subject shall; however, remain unchanged.

Copyright Business Recorder, 2024