Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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Euro LIBOR Hits New Low |
January 22, 2010
According to London South East, Euro LIBOR hit a new low upon signals from the European Central Bank (ECB) regarding its liquidity program. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
ECB replaced the funds it had removed from financial institutions at the end of its maintenance period. According to experts, the €100 billion in overnight deposits, reflecting an increase of more than 100% in such funds, indicated the central bank’s comfort with liquidity levels. In turn, Three-Month Euro LIBOR dropped to a new low of 0.61625% on Thursday.
LIBORATED.com has reported on LIBOR rates’ responsiveness to central bank decisions. Financial institutions approve of central banks’ interventionist policies in the name of economic stability, manifested in liquidity programs and low interest rates. That approval turns into low interbank rates, collectively expressed in lower LIBOR rates. Early in the week, LIBORATED.com reported upward movement in Sterling LIBOR as the Bank of England signaled greater future attention to inflation, traditionally realized in higher interest rates.