KarachiIn the wake of the decision of the State Bank in Pakistan (SBP) to maintain the policy rate unchanged by 12 %, Karachi Interink (KIBor) showed a significant increase on Tuesday, as interest rates range from one week to one week.
KIBor reflects the average interest rate in which banks lend to each other in the market between banks.
According to data from ARIF Habib Limited (AHL), KIBor increased for a week by 34 basis points (BPS) to 12.41 %, while two weeks increased by 37 bits per second to 12.4 %. Kibor rose for one month by 41b per second to 12.35 %, and the range increased for three months by 19 bits per second to 12.05 %. The six -month rate jumped by 22 bits per second to 12 %, the rate of nine months increased by 19 bits to 12.15 %, and the average period of one year increased by 16 bits per second to 12.13 %.
SBP decision to keep the main interest rate by 12 % on Monday was a surprise to markets and analysts, who expected a 50 -bit rate per second, after reading the low inflation in February.
In its statement, the MPC’s Committee highlighted a sharp decrease in the prices of the damageable foodstuffs, which, along with adequate stocks of non -damaged goods, helped reduce the total food inflation. In addition, global oil prices, stable exchange rate and the basic effects favored to lower energy prices contributed.
However, MPC also noted that basic inflation was still high and continuous, which was more flexible than expected. The committee expected that inflation would gradually decrease before stabilizing the target range of 5-7 %.
“Inflation expectations are still under risks resulting from fluctuations in food prices, energy prices, additional financial measures, protectionist policies in the main economies, and the uncertain path of global commodity prices,” added MPC.
