Inter-bank initial interest rate slides below 13 pc
Updated at: 1255 PST, Monday, March 02, 2009
KARACHI: Inter-bank initial interest rate dropped down below 13 percent, as six months’ Kibor stood at 12.85 percent.
Money market dealers said that the interest rate of six months’ Kibor during January 1 till to date shrank by 2.83 percent due to existing additional liquidity in the banking system and, therefore, the money market dealers were expecting a cut in interest rate.
On the other hand, inter-bank one year T-Bills cut off yield was 13 percent on February 25, which now after the shrink traded at 12.85 percent.
Economists said that the banks preferring investment in government securities instead of giving loans to the private sector and avoiding taking any risk. In this backdrop, private sector was also reluctant taking loans at high rate of interest.
According to State Bank disbursement of loans to the private sector as against previous year remained 47 percent low.
KARACHI: Inter-bank initial interest rate dropped down below 13 percent, as six months’ Kibor stood at 12.85 percent.Money market dealers said that the interest rate of six months’ Kibor during January 1 till to date shrank by 2.83 percent due to existing additional liquidity in the banking system and, therefore, the money market dealers were expecting a cut in interest rate.
On the other hand, inter-bank one year T-Bills cut off yield was 13 percent on February 25, which now after the shrink traded at 12.85 percent.
Economists said that the banks preferring investment in government securities instead of giving loans to the private sector and avoiding taking any risk. In this backdrop, private sector was also reluctant taking loans at high rate of interest.
According to State Bank disbursement of loans to the private sector as against previous year remained 47 percent low.
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