The State Bank of Pakistan (SBP) has officially released the Karachi Interbank Offered Rates (KIBOR) for Thursday, September 14, 2023.
These rates serve as critical benchmarks for commercial lending and interbank borrowing across the country. KIBOR is widely used by financial institutions to determine interest rates on various loan products, especially those offered to the corporate sector.
The latest figures issued by the central bank reflect continued high borrowing costs, indicative of the tight monetary stance aimed at curbing inflation and stabilizing the currency. The data, as of September 14, 2023, shows a slight upward shift in longer-term tenors, underscoring the persistent pressure on the financial sector.
Below are the updated KIBOR rates released by SBP:
• 1-Week: Bid – 22.11% | Offer – 22.61%
• 2-Week: Bid – 22.56% | Offer – 23.06%
• 1-Month: Bid – 22.89% | Offer – 23.39%
• 3-Month: Bid – 23.79% | Offer – 24.04%
• 6-Month: Bid – 24.43% | Offer – 24.68%
• 9-Month: Bid – 24.50% | Offer – 25.00%
• 1-Year: Bid – 24.54% | Offer – 25.04%
These KIBOR values are updated daily by the SBP and are based on the average rates quoted by a panel of participating banks. The consistent rise in KIBOR over recent months highlights the challenging macroeconomic environment and the efforts by monetary authorities to maintain fiscal discipline.
Market analysts are closely watching the trend in KIBOR, especially in September, as it provides key insight into the banking sector’s expectations for inflation and monetary policy. The central bank’s September monetary policy review is also expected to take KIBOR movements into account before announcing any changes in the policy rate.
As Pakistan navigates its economic recovery, the role of KIBOR will remain vital in determining the cost of capital for businesses and influencing investment decisions throughout September and beyond.