KARACHI: The State Bank of Pakistan (SBP) has issued the Karachi Interbank Offered Rates (KIBOR) for various tenors as of November 16, 2023.
KIBOR serves as a key benchmark for interest rates in the financial market, influencing a range of financial instruments and transactions.
The latest KIBOR rates, reflective of the prevailing market conditions, are as follows:
1. 1-Week Tenor:
• Bid: 21.51
• Offer: 22.01
2. 2-Week Tenor:
• Bid: 21.56
• Offer: 22.06
3. 1-Month Tenor:
• Bid: 21.51
• Offer: 22.01
4. 2-Month Tenor:
• Bid: 21.03
• Offer: 21.28
5. 3-Month Tenor:
• Bid: 21.09
• Offer: 21.34
6. 4-Month Tenor:
• Bid: 21.12
• Offer: 21.62
7. 6-Month Tenor:
• Bid: 21.12
• Offer: 21.62
The KIBOR rates play a crucial role in determining interest rates for various financial products, including loans and deposits. Financial institutions use these rates as a reference point for pricing their products, and they are widely regarded as indicators of the overall economic conditions.
The 1-week and 2-week tenors are often closely watched for short-term market dynamics, reflecting the immediate liquidity conditions in the banking sector. Meanwhile, the 1-month to 6-month tenors provide insights into the medium-term interest rate environment, guiding businesses and investors in their financial planning.
It’s important to note that these rates are subject to change based on market dynamics, economic conditions, and the monetary policy stance of the State Bank of Pakistan. The central bank regularly reviews and updates these rates to ensure they align with the prevailing economic landscape.
The issuance of KIBOR rates is a standard practice by the SBP, contributing to transparency and efficiency in the financial markets. Market participants, including banks, financial institutions, and investors, closely monitor these rates to make informed decisions regarding their financial activities.
As of November 16, 2023, the latest KIBOR rates provide valuable information to market participants, allowing them to navigate the financial landscape with a better understanding of the prevailing interest rate environment.
