KARACHI, December 22, 2021 – The State Bank of Pakistan (SBP) has announced the latest Karachi Interbank Offered Rates (KIBOR) for various tenors, effective from December 22, 2021.
KIBOR serves as a crucial benchmark for interbank lending rates, influencing the cost of borrowing and lending within the country’s financial sector.
KIBOR rates are determined daily based on the average rate at which major banks in Karachi are willing to lend funds to each other. These rates are essential for pricing a range of financial products including loans, mortgages, and bonds. The latest figures reflect current economic conditions and the monetary policy stance of the SBP.
Below is the table summarizing the KIBOR rates as of December 22, 2021:
| Tenor | BID | OFFER |
|---|---|---|
| 1 – Week | 9.62 | 10.12 |
| 2 – Week | 9.71 | 10.21 |
| 1 – Month | 9.84 | 10.34 |
| 3 – Month | 10.19 | 10.44 |
| 6 – Month | 10.94 | 11.19 |
| 9 – Month | 11.03 | 11.53 |
| 1 – Year | 11.18 | 11.68 |
The data shows an upward trend in KIBOR rates across all tenors compared to previous months, signaling tighter liquidity conditions in the interbank market. The 1-week KIBOR rate is 9.62% on the bid side and 10.12% on the offer side. For the 2-week tenor, the rates are slightly higher at 9.71% and 10.21%, respectively. The 1-month rate stands at 9.84% (bid) and 10.34% (offer), while the 3-month KIBOR has increased to 10.19% (bid) and 10.44% (offer).
Longer tenors such as the 6-month, 9-month, and 1-year KIBOR rates exhibit a more significant rise. The 6-month rate is 10.94% on the bid side and 11.19% on the offer side. The 9-month tenor has climbed to 11.03% (bid) and 11.53% (offer), while the 1-year rate is at 11.18% and 11.68% for bid and offer, respectively.
This rise in KIBOR rates reflects the SBP’s current monetary policy, which aims to address inflationary pressures and maintain economic stability. Analysts note that the increase in interbank lending rates is likely driven by the SBP’s efforts to manage liquidity and curb inflation. The adjustment in rates indicates the central bank’s response to global financial trends and domestic economic conditions.
Financial institutions, corporations, and borrowers should pay close attention to these rates, as they play a vital role in financial decision-making and planning. The KIBOR rates will continue to serve as an essential benchmark for financial activities in Pakistan, impacting a wide range of economic transactions and investment decisions.
The financial community is advised to monitor these changes closely as they navigate the evolving economic landscape.
