Friday January 11, 12:37 PM
UK Libor interbank fixings rise following BoE decision to keep rates on hold
LONDON (Thomson Financial) - The cost of borrowing between banks in the UK rose sharply today, following yesterday's decision by the Bank of England decision to keep interest rates on hold.
Yesterday interbank borrowing rates - which were fixed before the BoE rate news - fell as the odds of a cut had sharpened before the decision, with the overnight rate dropping below the base rate level of 5.50 pct.
Today however they rose again, with the overnight London Interbank Offered Rate (Libor) rate climbing to 5.59 pct from 5.44 pct.
The one week rate climbed to 5.60 pct from 5.45 pct, while the three month rate -- a key indication of banks' willingness to lend to each other over the medium term -- rose to 5.68 pct from 5.63 pct.
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