KIBOR Falls Across-The-Board After Inflation Hits Lowest Level Since June 2022

The Karachi Inter-Bank Offered Rate (KIBOR), a benchmark for lending to consumers and businesses, has fallen across the board on a day-on-day basis. According to the State Bank of Pakistan (SBP) data, the 6-month KIBOR clocked in at 21.59 percent, down by 14 basis points DoD after last week’s data from Pakistan Bureau of Statistics (PBS) which saw inflation clock in below market expectations at 23.1 percent. The other widely used 3-Month KIBOR was down 14 bps and was recorded at 21.63 percent. The 1-year KIBOR slid by 17 bps to 21.27 percent. According to PBS, the Consumer Price Index (CPI) based inflation increased to 23.1 percent on a year-on-year basis in February 2024 as compared to an increase of 28.3 percent in the previous month and 31.5 percent in February 2023. On average CPI stood at 27.96 percent during the first eight months (July-February) of the current fiscal year compared to 26.19 percent during the same period of the last fiscal year.