The so-called reversal rate may kick in at different points across sectors, with households more sensitive to the imposition – or even the fear of the imposition – of negative rates and more likely than market participants  to behave in a fashion that counteracts the intended aim of the policy. The difference in savings cultures across European countries also plays a role.
As most of you may be aware that payment systems are usually categorized as wholesale and retail payment systems. Like the rest of the world, SBP upgraded its wholesale payments infrastructure to a Real Time Gross Settlement system, over a decade ago. The RTGS system has made our monetary policy operations more effective and efficient. 12.