Friday May 9, 12:20 PM
UK 3-month interbank lending rate edges down; overnight rate up slightly
LONDON (Thomson Financial) - The rate at which banks lend to each other edged up slightly on an overnight basis after the Bank of England left rates unchanged on Thursday, but the three-month maturity eased on expectations that rates will fall
next month.
The key three-month Libor rate edged down slightly to 5.77 percent from 5.78 percent the previous day.
The one-month rate was stable at 5.43 percent, while the overnight contract, generally the most closely aligned to the Bank of England's (BoE) 5.00 percent benchmark rate, edged up to 5.08 percent from 5.07.
The BoE kept the Bank Rate on hold at 5.00 percent on Thursday, but markets are pricing in a high probability that the central bank will cut rates by a quarter point to 4.75 percent next month.
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