KIBOR Explained: A Comprehensive Guide to Pakistan's Interest Rates

KIBOR is the Karachi Interbank Offered Rate, which is the average interest rate at which banks in Pakistan lend and borrow money from each other.

It's a crucial indicator of the country's monetary policy, as it reflects the overall health of the economy.

The State Bank of Pakistan (SBP) uses KIBOR to set its monetary policy, with the aim of maintaining price stability and promoting economic growth.

KIBOR is calculated daily, based on the rates at which banks trade with each other in the interbank market, which is a platform for banks to buy and sell government securities and other financial instruments.

KIBOR is the acronym for the Kenyan Interbank Offered Rate, which is the average interest rate at which Kenyan banks lend and borrow money from each other.

It's calculated daily by the Central Bank of Kenya, based on the rates submitted by commercial banks.

The KIBOR rate is a key benchmark for interest rates in Kenya, and it's widely used to determine the cost of borrowing for businesses and individuals.

KIBOR stands for Kenya Interbank Offered Rate, which is the average interest rate at which Kenyan banks lend and borrow money from each other.

KIBOR is a benchmark rate that reflects the cost of borrowing for commercial banks in Kenya.

It's calculated daily by the Kenya Bankers Association, taking into account the rates at which banks lend and borrow from each other.

The KIBOR rate is influenced by the overall economic conditions in Kenya, including inflation and interest rates.

Understanding the importance of KIBOR is crucial for anyone looking to navigate the world of finance. KIBOR is the benchmark interest rate for the Pakistani economy, and it has a significant impact on the country's financial landscape.

KIBOR is used to determine the interest rates on loans and other financial products, making it a key indicator of the economy's health. It's like a heartbeat, signaling to investors and lenders whether the economy is thriving or struggling.

The central bank of Pakistan, the State Bank of Pakistan, uses KIBOR to set monetary policy and regulate the money supply. This helps maintain price stability and promotes economic growth.

KIBOR's impact on the economy is far-reaching, influencing everything from mortgage rates to business loans. It's a vital component of Pakistan's financial system, and its fluctuations can have significant effects on the country's economic performance.

KIBOR Rates are the backbone of Kenya's financial system, influencing the cost of borrowing for individuals and businesses.

The rates are determined by the Kenya Bankers Association (KBA) through a weekly auction.

KIBOR rates are used to determine the interest rates on loans and other financial products, affecting the cost of borrowing for consumers and businesses.

The rates are also a key indicator of the overall health of the Kenyan economy, reflecting the level of liquidity and credit availability in the market.

The current rate of KIBOR, Kenya's interbank offered rate, is a critical factor in determining the interest rates of commercial banks. It's currently at 9.25%, as of the last update.

KIBOR rates are influenced by the Central Bank of Kenya's (CBK) monetary policy decisions. The CBK uses KIBOR rates to control inflation and maintain economic stability.

The CBK reviews and updates KIBOR rates quarterly. This ensures that the rates remain relevant and effective in achieving the country's economic goals.

The KIBOR rate has a history dating back to 1995, when it was first introduced in Pakistan.

The first KIBOR rate was 15.5% and it was used as a benchmark for setting interest rates in the country.

In 1999, the KIBOR rate peaked at 20.5% due to economic instability.

The KIBOR rate has fluctuated over the years, but it has been generally trending downwards since 2002.

One of the key factors that influenced the KIBOR rate in the past was the foreign exchange market.

In 2015, the KIBOR rate reached a low of 6.3% due to a stable economic environment.

The State Bank of Pakistan (SBP) cut its benchmark interest rate by a record 250 basis points to 15 per cent on Monday.

This significant cut led to a decline in the Karachi Interbank Offered Rate (Kibor) by 8 to 137 basis points across all tenors on Tuesday.

The one-week Kibor fell by 137bps to 15.47 per cent, and the two-week Kibor dropped by 87bps to 15.46 per cent.

The SBP's decision to cut interest rates is a response to the quicker-than-expected decrease in inflation, which is now close to the SBP's medium-term target range in October.

Inflation has decreased more swiftly than anticipated and is now close to the SBP's target range of 5-7 percent.

The SBP expects inflation to remain relatively low due to several favourable factors, including an improved supply of key food commodities, decreasing oil prices, and base effects.

Pakistan's headline inflation stood at 7.2 per cent in October, compared with 6.9 per cent in the previous month.

The SBP forecasts that average inflation for FY25 will be below its earlier projected range of 11.5 per cent to 13.5 per cent.

Analysts expect inflation to be around 7.0 per cent to 8.0 per cent, while the IMF projects it to be 9.5 per cent for this fiscal year.

The SBP's interest rate cut is likely to support macroeconomic stability and help achieve economic growth on a sustainable basis.

Since June, the SBP has lowered interest rates by 700bps over four straight cuts.