KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as on October 27, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 14.79 | 15.29 |
| 2 – Week | 14.91 | 15.41 |
| 1 – Month | 15.03 | 15.53 |
| 3 – Month | 15.52 | 15.77 |
| 6 – Month | 15.59 | 15.84 |
| 9 – Month | 15.60 | 16.10 |
| 1 – Year | 15.62 | 16.12 |
Financial experts said the Karachi Interbank Offered Rate (KIBOR) is a key benchmark used by banks and financial institutions for lending and borrowing activities in Pakistan’s money market. Changes in KIBOR generally reflect liquidity conditions, inflation expectations, and the monetary policy stance of the State Bank of Pakistan.
Higher KIBOR rates often increase borrowing costs for businesses and consumers, particularly for loans linked to floating interest rates, including corporate financing and home loans. Analysts noted that rising interest rates are usually aimed at controlling inflationary pressure and stabilizing the economy by reducing excessive demand in the market. Investors and corporate entities closely monitor KIBOR movements to assess future financing costs and economic trends.
The benchmark also plays an important role in determining returns on various savings instruments and investment products offered by banks. Market participants expect KIBOR to remain sensitive to policy rate adjustments and overall macroeconomic conditions in the country.
