The State Bank of Pakistan (SBP) has unveiled the latest Karachi Interbank Offered Rates (KIBOR) on November 15, 2021, providing insights into the prevailing interest rates in the interbank market.
KIBOR serves as a key benchmark for various financial transactions and lending rates in the country.
The Karachi Interbank Offered Rates for different tenors, representing the bid and offer rates, are as follows:
• 1-Week Tenor:
• BID: 7.27%
• OFFER: 7.77%
• 2-Week Tenor:
• BID: 7.33%
• OFFER: 7.83%
• 1-Month Tenor:
• BID: 7.43%
• OFFER: 7.93%
• 3-Month Tenor:
• BID: 8.42%
• OFFER: 8.67%
• 6-Month Tenor:
• BID: 8.72%
• OFFER: 8.97%
• 9-Month Tenor:
• BID: 9.06%
• OFFER: 9.56%
• 1-Year Tenor:
• BID: 9.24%
• OFFER: 9.74%
KIBOR plays a crucial role in the financial landscape, influencing interest rates for various financial products such as loans, advances, and other credit facilities. These rates are determined through the bidding and offering process in the interbank market, providing a transparent mechanism for financial institutions to set their lending and borrowing rates.
The 1-Week tenor reflects bid and offer rates of 7.27% and 7.77%, respectively, providing a snapshot of short-term lending rates prevailing in the interbank market. As the tenor extends to 1-Year, the rates also reflect longer-term borrowing and lending conditions.
These rates are subject to change based on market dynamics, liquidity conditions, and monetary policy decisions. The SBP regularly releases KIBOR rates to keep the financial industry informed and facilitate transparent and efficient financial transactions.
The KIBOR rates announced by the SBP on November 15, 2021, are indicative of the prevailing interest rate environment in the interbank market, offering valuable insights for financial institutions, businesses, and individuals engaging in various financial activities.
It’s important to note that these rates serve as a reference point for financial transactions and may impact borrowing and lending decisions across the banking sector. As market conditions evolve, the SBP will continue to update and release KIBOR rates to ensure transparency and facilitate informed decision-making within the financial landscape.
