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 Rises after ECB Statement |
December 5, 2009
Reuters reports Euro LIBOR rose slightly following a policy statement by the European Central Bank that described an anticipated wind down to its aggressive liquidity programs. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
At press time, Three-Month Euro LIBOR was 0.68125 %, continuing its incremental climb from a Nov. 2 record low of 0.66938%. Upward pressure on Euro LIBOR is a foreseen consequence of the ECB’s curtailment of actions to bolster the economy with cash infusions and low interest rates. In Thursday’s announcement, the ECB said that it would keep its policy rate at the current historic low of 1%. According to Financial Times, the central bank said it would limit demand for one-year liquidity later in December and reduce shorter-term liquidity instruments in 2010.
LIBORATED.com has been covering the effect of central banks on LIBOR rates. Financial institutions have favored central banks’ activist measures—low central bank interest rates and cash infusions—and have expressed that approval in lower interbank lending rates, reflected in lower LIBOR rates.