O/N reverse repo rate fixed at 13.00pc, repo at 11.00pc
KARACHI: The State Bank of Pakistan (SBP) has decided to increase ‘Policy Rate’ (Target Rate) from 11.50 percent to 12.00 percent. According to SBP, with increase in target rate, the SBP Overnight Reverse Repo (Ceiling) rate will be at 13.00 percent, i.e. 100 bps above the SBP Policy Rate. READ ALSO: Businesspeople say any hike in policy rate to hit businesses The SBP Overnight Repo (Floor) rate…
The State Bank of Pakistan (SBP) has raised the policy rate, also known as the Target Rate, from 11.50 percent to 12.00 percent, according to the latest statement. This increase will also lead to an adjustment in the SBP Overnight Reverse Repo rate, which will rise to 13.00 percent, being 100 basis points above the new policy rate.
Conversely, the Overnight Repo rate will be set at 11.00 percent, 100 basis points below the policy rate. Consequently, the Interest Rate Corridor will now span from 11.00 percent to 13.00 percent annually, with a width of 200 basis points. The SBP maintains its commitment to keep the money market overnight rate aligned closely with the policy rate.
The new adjustments will come into effect on October 27th, 2026, while other rules remain unchanged.
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