Islamabad, Sep 12: Brokerage house Arif Habib Limited (AHL) noted in a brief statement today that there has been a considerable reduction in KIBOR rates since the last Monetary Policy Committee (MPC) meeting in July 2024. The 3M, 6M, and 12M rates have dropped by 171bps, 173bps, and 131bps, respectively.
According to AHL, the spread between the policy rate and KIBOR is currently -231bps (12M), -193bps (6M), and -183bps (3M). The spread was previously +45bps for 3M, +55bps for 6M, and +71bps for 12M, with KIBOR being higher than the policy rate, according to a 5-year historical average.
According to the brokerage house, this shows that the market has been expecting both a significant cut in today’s policy statement and a continuation of the rate-down cycle.
According to the brokerage company, it expects the MPC to declare a 150 basis point reduction, resulting in an 18% policy rate.
