Today's LIBOR Rates
| 1M | 0.22844 |  |
| 3M | 0.24969 |  |
| 6M | 0.38500 | |
| 1Y | 0.83750 | |
Average 30 Year Fixed Jumbo: 5.66% |
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Key LIBOR Rates Remain Near Record Lows |
November 17, 2009
Reuters reports that key LIBOR rates remain near record lows as financial institutions await the actions of their countries’ central banks. LIBOR stands for London Interbank Offered Rate and is a filtered average of the rates banks charge each other for unsecured, short-term loans. LIBORATED.com has been reporting on the impact central banks’ policies and statements have on LIBOR rates.
Three-Month US Dollar LIBOR was at a record low of 0.27125% as Fed Chair Ben Bernanke was expected to comment on the United States’ economic outlook. Recent Fed remarks have indicated an “accommodative money policy,” translating into continued ultra-low rates.
Three-month Euro LIBOR remained at 0.67125%. The European Central Bank (ECB) has indicated that it would keep euro zone interest rates at 1% well into next year.
Three month Sterling LIBOR rose slightly to 0.61406%. Of the LIBOR rates, the one for UK’s currency has been rising this fall on worries that the Bank of England would end its quantitative easing (QE) program to maintain liquidity. Following a report that the British economy was still in recession, the Bank of England announced it would increase QE by £25 billion.
As reported at LIBORATED.com, banks enjoy activist central bank policies that keep rates low and pump cash into the system. Hints that such policies are ending create nervousness in the financial markets, leading to higher interbank lending rates as portrayed in higher LIBOR rates.