KARACHI: State Bank of Pakistan (SBP) on Thursday issued the following Karachi Interbank Offered Rates (KIBOR) on November 18, 2021.
| Tenor | BID | OFFER |
| 1 – Week | 7.39 | 7.89 |
| 2 – Week | 7.48 | 7.98 |
| 1 – Month | 7.66 | 8.16 |
| 3 – Month | 8.52 | 8.77 |
| 6 – Month | 8.83 | 9.08 |
| 9 – Month | 9.18 | 9.68 |
| 1 – Year | 9.42 | 9.92 |
Market analysts said that the movement in KIBOR reflects ongoing shifts in monetary conditions and expectations of future policy rates. They noted that short-term tenors remain closely linked to liquidity conditions in the interbank market, while longer tenors incorporate inflation expectations and government borrowing needs. With rising inflationary pressures at the time, borrowing costs for banks and corporates were gradually increasing, impacting overall credit expansion in the economy.
Experts added that the direction of KIBOR is often influenced by SBP policy rate adjustments, treasury bill yields, and demand for liquidity from commercial banks. They further stated that sustained upward pressure on rates could lead to tighter financial conditions, potentially slowing private sector credit growth. However, stable inflows and prudent monetary management may help balance liquidity in the banking system in coming weeks. Overall, market direction remained dependent on inflation outlook and fiscal borrowing requirements in the period under prevailing conditions.
