KARACHI, July 26, 2021 – The State Bank of Pakistan (SBP) has released the Karachi Interbank Offered Rates (KIBOR) for various tenors on Monday, providing insight into the prevailing borrowing and lending rates in the interbank market.
The latest KIBOR rates, effective from July 26, 2021, are as follows:
| Tenor | BID | OFFER |
| 1-Week | 6.94 | 7.44 |
| 2-Week | 6.97 | 7.47 |
| 1-Month | 7.02 | 7.52 |
| 2-Month | 7.14 | 7.39 |
| 3-Month | 7.35 | 7.60 |
| 6-Month | 7.45 | 7.95 |
| 1-Year | 7.53 | 8.03 |
The KIBOR serves as a benchmark for determining the interest rates for various financial products, including loans, deposits, and derivatives, in the Pakistani financial markets. It represents the average interest rates at which banks in Pakistan are willing to lend to one another in the interbank market.
The 1-week KIBOR stands at 6.94% bid and 7.44% offer, indicating the range of interest rates at which banks are willing to lend and borrow funds for a duration of one week. Similarly, the rates vary for different tenors, reflecting the prevailing market conditions and demand-supply dynamics.
These rates are crucial for financial institutions, businesses, and individuals in making informed decisions regarding borrowing and lending activities. The KIBOR rates are subject to fluctuations based on changes in monetary policy, economic conditions, and liquidity in the financial system.
The release of KIBOR rates by the SBP provides transparency and efficiency in the financial markets, facilitating the functioning of the banking system and promoting stability in interest rate movements.
Market participants closely monitor KIBOR rates as they influence the pricing of various financial instruments, including commercial loans, mortgages, and government securities. Moreover, these rates play a significant role in shaping monetary policy decisions by the central bank.
The SBP continues to play a pivotal role in regulating and supervising the banking sector, ensuring the smooth functioning of financial markets, and fostering economic growth in Pakistan.
The KIBOR rates are available on the SBP’s official website and are updated regularly to reflect the latest market developments and trends.
Overall, the release of KIBOR rates by the SBP serves as a valuable tool for market participants, enabling them to make informed financial decisions and manage risks effectively in the dynamic environment of the Pakistani financial markets.
