Kibor gains pace, chasing 22pc

The benchmark Karachi Interbank Offered Rate (Kibor) has started crawling up after the State Bank of Pakistan (SBP) left its policy rate steady at an unprecedented 22 per cent in its last monetary review on Jan 29, said market sources. The Kibor six-month tenor rose by 24 basis points during the week reflecting growing concerns over the high interest rate and inflation. It was 20.82 per cent on Jan 24 reaching 21.06pc on Feb 1. “In the rate cut anticipation, the markets have adjusted downward including the T-bills yields, however, the unchanged interest rate is forcing the Kibor to go higher,” said S. S. Iqbal, a money market expert. He said the next T-bills auction would make it clear whether the cut-off yields are increased or not. In the previous auction held on Jan 24, the benchmark six-month T-bills cut-off yield was 20.4pc while the three-month was 20.99pc and the 12-month was 20.22pc per annum.