KARACHI, June 27, 2023 – The State Bank of Pakistan (SBP) has released the updated Karachi Interbank Offered Rates (KIBOR) for Tuesday, June 27, 2023. These rates, commonly referred to as KIBOR, serve as the benchmark interest rates at which commercial banks lend unsecured funds to one another in the interbank market.
The KIBOR rates are a crucial tool used by banks and financial institutions to price loans, particularly for corporate borrowers. These rates are also reflective of the current monetary policy stance, liquidity conditions in the market, and broader economic trends. As of June 27, 2023, the SBP has published the following KIBOR values for various tenors:
• 1-Week: Bid at 21.89%, Offer at 22.39%
• 2-Week: Bid at 21.97%, Offer at 22.47%
• 1-Month: Bid at 22.04%, Offer at 22.54%
• 3-Month: Bid at 22.66%, Offer at 22.91%
• 6-Month: Bid at 22.72%, Offer at 22.97%
• 9-Month: Bid at 22.75%, Offer at 23.25%
• 1-Year: Bid at 22.77%, Offer at 23.27%
The latest KIBOR figures indicate that interbank lending rates remain elevated across all maturities, with the highest offered rate reaching 23.27% for the one-year tenor. This reflects the prevailing tight monetary policy stance adopted by the SBP to combat inflation and stabilize the currency amid ongoing fiscal and external challenges.
Financial analysts closely monitor KIBOR movements to gauge short-term interest rate expectations and predict possible shifts in monetary policy. Higher KIBOR rates tend to increase borrowing costs for businesses and consumers, potentially slowing down credit growth and economic activity in the short term.
It is important to note that KIBOR is calculated based on the average of bid and offer rates submitted by a panel of leading banks, ensuring transparency and competitiveness in interbank lending.
The SBP will continue to update the KIBOR regularly to reflect market dynamics and monetary policy changes. Borrowers, lenders, and investors are advised to track these rates for informed financial decision-making.