State Bank of Pakistan

09/12/2024 | Press release | Distributed by Public on 09/12/2024 07:10

DMMD Circular No. 05 of 2024 SBP’s Policy Rate and Overnight Repo / Reverse Repo Facilities

DMMD Circular No. 05 of 2024September 12, 2024

The Presidents/ Chief Executives,
All Commercial Banks/ Primary Dealers

Dear Sirs/Madams,
SBP's Policy Rate and Overnight Repo / Reverse-Repo Facilities
Please refer toDMMD Circular No. 04dated July 29, 2024. Following changes are announced with reference to this circular:
  1. SBP has decided to decrease 'Policy Rate' (Target Rate) from 19.50% to 17.50%.
  2. SBP Overnight Reverse Repo (Ceiling) rate will be at 18.50% i.e. 100 bps above the SBP Policy Rate.
  3. The SBP Overnight Repo (Floor) rate will be at 16.50% i.e. 100 bps below the SBP Policy Rate.
  4. Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 16.50% and 18.50% 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).
Above changes are effective from Sep 13, 2024. Other instructions on the subject shall, however, remain unchanged.
Yours Sincerely,
Sd/

Mahmood ul Hasan Khan
Director