Staff Report
KARACHI: Commercial banks’ benchmark six-month interest rate, at which they lend funds to each other at the Karachi money market, better known as the Karachi Inter-bank Offered Rate (KIBOR), reached a 16.81 per cent high on Monday.
The six-month rate increased by 91 basis points (bps) or 16.81 per cent while one-year KIBOR was up by 90 bps to 17 per cent
In a financial year to date, it was six months up by 148bps and one-year 138bps,
Earlier, the State Bank of Pakistan (SBP) raised the interest rate by 100 bases to an all-time high of 16 per cent. In a statement, the central bank said that the drastic decision reflected the growing inflationary pressures in the country amidst a contracting economy.
