SBP reduces Overnight Reverse-Repo rates

The State Bank of Pakistan (SBP)’s Overnight Reverse-Repo (Ceiling) rate has been reduced from 14 percent to 13.50 percent per annum from August 1, 2011. Referring to DMMD circular August 15, 2009 and another circular November 29, 2010, the SBP Overnight Repo facility will be available at 10.50 percent per annum.

This will serve as the ‘Floor’ for the Interest Rate corridor as announced by the above referenced circular, the SBP circular said. Hence, the Floor and Ceiling levels for the interest rate corridor are 10.50 percent and 13.50 percent per annum respectively.

From: Dailytimes