Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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Key LIBOR Rates Poised Ahead of Central Bank Announcements |
December 14, 2009
Reuters reports that LIBOR rates in US Dollars and Euros stayed close to record lows ahead of policy announcement from the central banks for the respective currencies. 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 US Dollar LIBOR was 0.25375%; Three-Month Euro LIBOR was 0.67625%. In the United States, the Federal Reserve will make a year’s-end statement on interest rates this Wednesday. According the Reuters’ piece, the Fed is expected to keep its rates at their current rock-bottom levels. Experts will be reading between the lines of the Fed’s statement to discern of activist policies to bolster the economy will be ratcheted back.
A similar study of the tea leaves will occur in Europe as banks respond to the European Central Bank’s (ECB) final tender of 1-Year Funds. Heavy bidding will reveal a banking system still tied to cheap money and by implication other central banks props. LIBORATED.com has reported on financial institutions’ approval of activist central bank policies, expressed in lower interbank rates that translate into lower LIBOR rates.