SBP issues KIBOR rates on November 24, 2021

SBP issues KIBOR rates on November 24, 2021

KARACHI, November 24, 2021 – The State Bank of Pakistan (SBP) has released the Karachi Interbank Offered Rates (KIBOR) for various tenors, effective from November 24, 2021.

These rates serve as benchmarks for lending between banks and are crucial indicators for financial market participants in Pakistan.

The KIBOR rates, which reflect the average rate at which major banks in Karachi are willing to lend to one another, are vital for determining the cost of borrowing in the interbank market. The rates are published daily by the SBP and are used by financial institutions, corporations, and other entities to price a variety of financial products and services, including loans, mortgages, and bonds.

The following table summarizes the KIBOR rates issued by the SBP as of November 24, 2021:

1 – Week8.829.32
2 – Week8.869.36
1 – Month8.979.47
3 – Month9.699.94
6 – Month10.0310.28
9 – Month10.3910.89
1 – Year10.6511.15

The data indicates a rising trend in KIBOR rates compared to previous months, reflecting changing market conditions and economic factors. The 1-week KIBOR rate stands at 8.82% on the bid side and 9.32% on the offer side. For the 2-week tenor, the rates are slightly higher at 8.86% and 9.36%, respectively. The 1-month rate is noted at 8.97% (bid) and 9.47% (offer), while the 3-month KIBOR has increased to 9.69% (bid) and 9.94% (offer).

Longer tenors such as the 6-month, 9-month, and 1-year KIBOR rates show a more pronounced rise. The 6-month rate is 10.03% on the bid side and 10.28% on the offer side. The 9-month tenor has seen a significant increase to 10.39% (bid) and 10.89% (offer), while the 1-year rate is at 10.65% and 11.15% for bid and offer, respectively.

The upward movement in KIBOR rates is indicative of tightening liquidity conditions in the interbank market, likely driven by the SBP’s monetary policy stance aimed at controlling inflation and stabilizing the currency. Analysts suggest that these rate adjustments reflect the SBP’s efforts to manage economic stability amidst global financial uncertainties and domestic economic challenges.

Market participants, including banks and borrowers, are advised to closely monitor these rates as they have significant implications for interest rate-sensitive transactions and financial planning. The KIBOR rates will continue to be a critical benchmark for financial activities in Pakistan, influencing decisions across the banking and corporate sectors.