Karachi, October 13, 2023 – The State Bank of Pakistan (SBP) has issued the updated Karachi Interbank Offered Rates (KIBOR), providing a snapshot of the interbank market’s lending and borrowing dynamics. KIBOR serves as a key financial benchmark for short-term loans, influencing interest rates across Pakistan’s banking and corporate sectors.
The SBP’s latest KIBOR data highlights slight variations across different tenors, reflecting ongoing adjustments in liquidity. For the 1-week tenor, the KIBOR stood at 21.76% for bids and 22.26% for offers, while the 2-week tenor was quoted at 21.79% and 22.29% for bids and offers, respectively. These shifts underline the SBP’s efforts to fine-tune market liquidity and manage inflationary trends.
The 1-month KIBOR showed a bid rate of 21.88% and an offer rate of 22.38%. Meanwhile, the 3-month KIBOR rates inched higher to 22.14% for bids and 22.39% for offers, signaling increased borrowing costs in the short term. These rates reflect market sentiment shaped by the SBP’s monetary policy stance.
For medium-term lending, the 6-month KIBOR reached 22.47% for bids and 22.72% for offers, maintaining its role as a critical indicator for business loans and financing. Similarly, the 9-month KIBOR was recorded at 22.45% for bids and 22.95% for offers, showing a modest upward trend.
The 1-year KIBOR, a key benchmark for long-term borrowing costs, stood at 22.47% for bids and 22.97% for offers. This rate reflects market expectations of sustained monetary tightening by the SBP to address economic challenges.
KIBOR, regulated by the SBP, plays an essential role in the financial ecosystem by ensuring transparency and consistency in interest rate determination. It is a widely-used reference point for banks, corporations, and financial institutions in pricing loans and investment products.
The SBP’s consistent updates to KIBOR rates highlight its commitment to maintaining stability and mitigating risks within the banking sector. As the economy faces inflationary pressures and liquidity constraints, these rates serve as a critical tool for financial planning and decision-making.