Domestic interest rates rose in July in line with June's increase of the overnight repo
rate by 25 basis points (bps,) and the 3-month interbank rate was up 9 bps in July.
Though the central bank refrained from hiking the discount rate in June, it did increase the overnight repo
rate by 25 basis points, which helped lift interest rates.
Also, calibrated open market operations by the SBP to manage residual liquidity demand played its part, besides keeping the overnight repo
rate generally close to the policy rate.
The median market expectation, as published by Bloomberg, was for a 25bp rate hike for both the weekly and the overnight repo
3) In this article, we focus on the interest rate corridor and liquidity management, and analyze the effect of these policies on the overnight market rate, which is represented by the Borsa Istanbul (BIST) overnight repo
This was visible in overnight repo
rate which on average remained closer to the policy rate.
Abstract: This paper presents the empirical results of the volatility transmission of money market overnight repo
rate along the yield curve in Pakistan.
In the money market, volatility in the overnight repo
rate was contained.
The central bank announced a new benchmark interest rate, the overnight repo
rate, on Wednesday and set it at 12 percent with immediate effect.
75 percent, instead of 4 per cent, and overnight repo
rate to 3.
The central bank announced a new target for the overnight repo
rate at 50 basis points or half a percentage point below the benchmark to better manage liquidity in the interbank market as part of the IMF loan program.
In order to prevent excessively worsening of liquidity conditions, which would have impacted financing conditions, RBI undertook measures to inject liquidity through OMO purchase auctions, overnight repo
, MSF and variable rate term repos.