This study examines the degree of pass through and adjustment speed of maturity wise deposit rates in response to changes in the discount rate in Pakistan, using the time series data from 1975 to 2016. The study finds evidence of a long run relationship among maturity wise deposit rates and discount rate. However, the estimates of long run model proposed by Philips & Loretan (1990) and short run Error Correction Model indicate that pass through is incomplete and slow. This study confirms asymmetric adjustment of pass through and upward rigidity in deposit rates. Overall, the finding of less than complete and asymmetric pass through suggests limited efficiency of monetary policy in Pakistan Supervisor:- Dr. Hasan Muhammad Mohsin