The State Bank of Pakistan (SBP) injected Rs1,202.65 billion into the money market through a combination of reverse repo purchase operations and Shariah-compliant Mudarabah-based Open Market Operations (OMOs).
Following the recent monetary policy rate cut to 13%, the SBP conducted a reverse repo purchase (injection) OMO for a two-day tenor. According to results issued by the central bank, it received 12 bids amounting to Rs1,013.65 billion.Â
The bids offered rates of return ranging from 13.07% to 13.25%, and the SBP accepted the entire amount at a 13.07% rate of return.
Simultaneously, the SBP conducted a Shariah-compliant Mudarabah-based OMO, also for a two-day tenor. The operation attracted 4 bids totaling Rs189 billion, with rates of return quoted between 13.10% and 13.15%. The SBP accepted the full amount at a 13.10% rate of return.
These injections come amid the SBP’s efforts to stabilize liquidity in the banking sector following its recent monetary easing measures, which have included a cumulative reduction of 900 basis points in the policy rate since June 2024.Â
The central bank continues to use OMOs as a tool to manage short-term liquidity and ensure smooth functioning of the interbank market.
