Karachi July 13 2022: Pakistan lending benchmark, 6-Month KIBOR, reaches an all time high of 15.87 percent on 13th July 2022 as Central Bank increases policy rate to a 13 year high according to data published by State Bank of Pakistan.
The previous high was of 15.76 percent hit on 11th November 2008.
The other most widely used 3-Month KIBOR is recorded at 15.63 percent while 1-year KIBOR registered at 16.23 percent.
In a single day, 3-Month KIBOR increased by 51 basis points to 15.86 percent, which is an all time high as per the data provided by SBP, as Central Bank increases policy rate by 125 basis point.
On Friday, the Monetary Policy Committee decided to raise the policy rate by 125 basis points to 15 percent. In addition, the interest rates on EFS and LTFF loans are now being linked to the policy rate to strengthen monetary policy transmission, while continuing to incentivize exports by presently offering a discount of 500 basis points relative to the policy rate.
"With inflation at multi-year highs around the world, Pakistan is taking timely, bold and decisive steps to cool its economy and prevent a de-anchoring of inflation expectations" says Acting Governor Dr Murtaza Syed