Today's LIBOR Rates
1 M |
0.25781 |
 |
3 M |
0.29281 |
|
6 M |
0.49363 |
|
1 YR |
0.83488 |
|
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LIBOR Hits Record Lows Across Major Currencies
3-Month LIBOR in Dollars, Pounds and Euros all make history
August 21, 2009
According to The Wall Street Journal, LIBOR has reached record lows in three major currencies: the U.S. Dollar, the British Pound Sterling and the Euro. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for short-term, unsecured loans.
At press time: 3-Month Dollar LIBOR, 0.41875%; 3-Month Sterling LIBOR, 0.73938%; 3-Month Euro LIBOR, 0.82713%. A lower LIBOR bespeaks increased bank confidence demonstrated in lower interest rates charged to their most trustworthy customers—other banks. Central banks in America, England and Europe have pumped cash into the system to prop up economies, and financial institutions approve of these moves.
Concurrently the LIBOR-OIS Spread, another gauge of banks’ willingness to lend, eased to 22.8 basis points (0.228%). The LIBOR-OIS Spread compares 3-Month LIBOR to the overnight index swap, an anticipated average of central bank rates. Banks are considered more confident and more willing to lend when LIBOR trends closer to the historically more stable central bank index, shrinking the spread.