KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as on February 17, 2023.
Following are the latest KIBOR rates:
| Tenor | Bid | Offer |
| 1 – Week | 16.82 | 17.32 |
| 2 – Week | 16.97 | 17.47 |
| 1 – Month | 17.19 | 17.69 |
| 3 – Month | 18.49 | 18.74 |
| 6 – Month | 18.63 | 18.88 |
| 9 – Month | 18.70 | 19.20 |
| 1 – Year | 18.77 | 19.27 |
Financial analysts said the higher KIBOR rates reflected the tight monetary policy stance adopted by the State Bank of Pakistan to contain rising inflation and stabilize the external account position. They noted that the benchmark interest rates in the interbank market remained elevated due to liquidity pressures and expectations of further monetary tightening.
Businesses and borrowers were likely to face increased financing costs as lending rates linked with KIBOR continued to rise across different tenors. Analysts added that the central bank’s efforts were aimed at controlling inflationary pressures, managing exchange rate volatility and supporting macroeconomic stability.
The banking sector was also closely monitoring market liquidity conditions and investor sentiment ahead of upcoming economic policy decisions. Market participants expected KIBOR to remain high in the near term in line with prevailing interest rate trends and inflation expectations in the country.
Experts said stable foreign inflows and improvement in fiscal indicators could help ease pressure on money market rates gradually.
