Interbank Interest Rates Fall as Central Banks Succeed in
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%
No comments