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Interbank Interest Rates Fall as Central Banks Succeed in
Thu, Dec 20 2007, 09:37 GMT
by Nadeem Walayat
Yesterday, the European Central Bank pumped in a record $500 billion into the financial system which resulted in a record drop of 0.5% in the 2 week euro interbank LIBOR rate.
The Bank of England similarly pumped in $10 billion at substantially lower interest rates than the interbank rate of 6.53%, the bulk of which was auctioned to bidders at the minimum rate of 5.36% which is below the base interest rate of 5.5%. This resulted in the rate dripping yesterday to 6.38% and today to 6.20%
Further similar auctions over the coming weeks by the worlds central banks are expected to continue to ease the liquidity squeeze which is inline with the Market Oracle analysis of 12th December 07 - Worlds Central Banks to the Rescue with $110 billions
Published on Thu, Dec 20 2007, 09:50 GMT
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