State Bank Overnight Repo/ Reverse-Repo Facilities

Karachi: State Bank of Pakistan Saturday announced changes in its DMMD Circular No.1 dated August 15, 2009 & Circular No. 12 dated July 30, 2011 and said SBP Overnight Reverse-Repo (Ceiling) rate has been reduced from 13.50% to 12.00% p.a.

SBP Overnight Repo facility will be available at 9.00% p.a. This will serve as the ‘Floor’ for the Interest Rate corridor as announced by above referenced circular. Hence, the Floor and Ceiling levels for interest rate corridor are 9.00% and 12.00% p.a. respectively (i.e. width of 300 bps). Above changes are effective from 10th October 2011. Other instructions on the subject shall, however, remain unchanged, SBP said.

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