Chain Reactions: Central bank changes repo rates

SBP announced the ceiling for overnight reverse repo rate has been reduced from 14 % to 13.5 % per annum.

KARACHI:

The State Bank of Pakistan (SBP) has announced that the ceiling for overnight reverse repo rate has been reduced from 14 per cent to 13.5 per cent per annum.

The decision came in the wake of a 50-basis-point reduction in the benchmark discount rate to 13.5 per cent announced in the monetary policy statement on Saturday. It is the rate at which banks borrow from the central bank’s discount window for a short period.



Published in The Express Tribune, July 31^st, 2011.