Regulatory Alerts2025-12-15 | DMMD Circular No. 09 of 2025Added · Updated
SBP's Policy Rate and Overnight Repo / Reverse-Repo Facilities
The State Bank of Pakistan decreases the Policy Rate from 11.00% to 10.50%, effective December 16, 2025. The Overnight Reverse Repo (Ceiling) rate is set at 11.50%, and the Overnight Repo (Floor) rate is set at 9.50%, establishing an interest rate corridor width of 200 basis points. These adjustments apply to all commercial banks and primary dealers, while other existing instructions remain unchanged.
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DMMD Circular No. 09
SBP's Policy Rate and Overnight Repo / Reverse-Repo Facilities
December 15, 2025
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The Presidents/ Chief Executives, All Commercial Banks/ Primary Dealers
Dear Sirs/Madams,
SBP's Policy Rate and Overnight Repo / Reverse-Repo Facilities
Please refer to DMMD Circular No. 04 of 2025 dated May 05, 2025. Following changes are announced with reference to this circular:
SBP has decided to decrease ‘Policy Rate’ (Target Rate) from 11.00% to 10.50%.
SBP Overnight Reverse Repo (Ceiling) rate will be at 11.50%, i.e., 100 bps above the SBP Policy Rate.
The SBP Overnight Repo (Floor) rate will be at 9.50%, i.e., 100 bps below the SBP Policy Rate.
Accordingly, the Floor and Ceiling levels for the Interest Rate Corridor are 9.50% and 11.50% 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 December 16th, 2025. Other instructions on the subject shall, however, remain unchanged.
Yours sincerely,
Dr. Mahmood ul Hasan Khan Director
Home — Circulars — DMMD Circular No. 09
SBP's Policy Rate and Overnight Repo / Reverse-Repo Facilities
December 15, 2025