KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as on February 27, 2023.
Following are the latest KIBOR rates:
| Tenor | Bid | Offer |
| 1 – Week | 17.39 | 17.89 |
| 2 – Week | 17.69 | 18.19 |
| 1 – Month | 18.76 | 19.26 |
| 3 – Month | 19.51 | 19.76 |
| 6 – Month | 19.72 | 19.97 |
| 9 – Month | 19.75 | 20.25 |
| 1 – Year | 19.80 | 20.30 |
The latest KIBOR readings reflect the prevailing tight liquidity conditions in the banking system and the continuation of a high interest rate environment in Pakistan. Analysts note that elevated benchmark rates are aligned with the State Bank of Pakistan’s monetary tightening stance aimed at curbing inflationary pressures and stabilizing the external account. Higher KIBOR levels directly impact borrowing costs for businesses and consumers, as many lending products, including corporate loans and mortgages, are linked to these benchmarks.
Market participants are closely monitoring interest rate signals, as persistently high KIBOR may dampen private sector credit growth and investment activity in the near term. However, some experts believe that once inflation shows a sustained downward trend, there could be room for policy easing, which would subsequently ease interbank rates. Until then, banks are expected to remain cautious in their lending strategies, maintaining spreads to manage risk amid macroeconomic uncertainties.
