Karachi, June 23, 2021 – The State Bank of Pakistan (SBP) has announced the Karachi Interbank Offered Rates (KIBOR) for various tenors on Wednesday, shedding light on the prevailing interest rates in the interbank market.
Here are the KIBOR rates for June 23, 2021:
1. 1-Week Tenor:
• Bid Rate: 6.86%
• Offer Rate: 7.36%
2. 2-Week Tenor:
• Bid Rate: 6.93%
• Offer Rate: 7.43%
3. 1-Month Tenor:
• Bid Rate: 7.00%
• Offer Rate: 7.50%
4. 2-Month Tenor:
• Bid Rate: 7.20%
• Offer Rate: 7.45%
5. 3-Month Tenor:
• Bid Rate: 7.44%
• Offer Rate: 7.69%
6. 6-Month Tenor:
• Bid Rate: 7.51%
• Offer Rate: 8.01%
7. 1-Year Tenor:
• Bid Rate: 7.56%
• Offer Rate: 8.06%
These rates provide insight into the cost at which banks are willing to lend to each other, establishing a benchmark for various financial transactions. The KIBOR is an essential indicator for determining interest rates on loans and advances in the banking sector.
The 1-Week tenor, with a bid rate of 6.86% and an offer rate of 7.36%, sets the short-term borrowing cost among banks. Meanwhile, the 1-Year tenor, with a bid rate of 7.56% and an offer rate of 8.06%, reflects the longer-term borrowing rates.
These rates are crucial for financial institutions, businesses, and investors as they impact the overall cost of borrowing in the economy. The KIBOR serves as a reference point for setting interest rates on various financial products, including loans, mortgages, and other credit facilities.
The rates declared by the SBP are based on the prevailing market conditions and the dynamics of the interbank lending market. They play a vital role in the monetary policy framework of the country, influencing economic activities by regulating the cost and availability of credit.
It’s important to note that these rates are subject to change based on market fluctuations, economic conditions, and the monetary policy stance of the central bank. Financial stakeholders closely monitor KIBOR rates as they have a direct impact on the profitability and liquidity of banks, as well as the overall financial health of the economy.
In conclusion, the release of Karachi Interbank Offered Rates by the State Bank of Pakistan provides a snapshot of the prevailing interest rates in the interbank market, offering valuable information for financial decision-makers and stakeholders. The KIBOR rates for various tenors serve as a key reference for setting interest rates in the broader financial landscape, influencing lending and borrowing activities in the country.
