In a move to provide transparency and crucial financial information, the State Bank of Pakistan (SBP) released the latest Karachi Interbank Offered Rates (KIBOR) on Monday, October 23, 2023.
These rates are pivotal in determining the benchmark interest rates for lending and borrowing in the financial markets.
Here are the Karachi Interbank Offered Rates – KIBOR rates for various tenors on October 23, 2023:
1. 1-Week Tenor:
• Bid: 21.56
• Offer: 22.06
2. 2-Week Tenor:
• Bid: 21.61
• Offer: 22.11
3. 1-Month Tenor:
• Bid: 21.62
• Offer: 22.12
4. 2-Month Tenor:
• Bid: 21.76
• Offer: 22.01
5. 3-Month Tenor:
• Bid: 21.82
• Offer: 22.07
6. 4-Month Tenor:
• Bid: 21.78
• Offer: 22.28
7. 1-Year Tenor:
• Bid: 21.77
• Offer: 22.27
These rates are crucial for financial institutions, investors, and businesses, as they serve as a reference point for setting interest rates on various financial instruments, including loans and bonds. The KIBOR rates are indicative of the cost of borrowing and reflect the prevailing market conditions.
The 1-week tenor, with bid and offer rates at 21.56 and 22.06, respectively, provides a short-term benchmark for financial transactions. Similarly, the 1-year tenor, with bid and offer rates at 21.77 and 22.27, serves as an indicator for long-term borrowing and lending.
The KIBOR rates are influenced by a variety of factors, including the country’s economic conditions, inflation rates, and global economic trends. As such, they are a barometer for the health of the financial sector and the overall economy.
Market participants closely monitor these rates as they impact the cost of funds for banks and financial institutions. Businesses and consumers, in turn, are affected by the prevailing interest rates when seeking loans or making investment decisions.
It’s important to note that KIBOR rates are subject to change based on market dynamics, and the rates provided here are reflective of the conditions on October 23, 2023. As the financial landscape evolves, these rates will be updated regularly, and stakeholders are advised to stay informed to make well-informed financial decisions.
The State Bank of Pakistan’s commitment to providing timely and accurate financial data contributes to the stability and transparency of the country’s financial markets. The KIBOR rates, being a key benchmark, play a vital role in shaping the lending and borrowing landscape in Pakistan.
