Central Banks Fail to Alleviate `Logjam' in Libor: Chart of Day By Mark Gilbert and Gavin Finch
Oct. 9 (Bloomberg) -- Central-bank efforts to drive down money-market borrowing costs with coordinated interest-rate cuts are failing, according to Nick Stamenkovic, a fixed-income strategist at RIA Capital Markets in Edinburgh. ``Central banks have pulled out all the stops and there's no sign whatsoever that money-market strains are easing,'' Stamenkovic said. ``The logjam is going to remain in place for some time to come. Three- month rates and beyond are actually deteriorating.'' The CHART OF THE DAY shows the divergence between the policy rates set by the Federal Reserve, the European Central Bank and the Bank of England, and the three-month cost of dollars, euros and pounds. The dollar London interbank offered rate climbed to its highest this year today, at 4.75 percent. The euro rate of 5.39 percent is up from 4.96 percent a month ago, while the pound rate has risen 43 basis points in the past three months to stand at 6.28 percent. The Fed, the ECB and the Bank of England all reduced their key lending rates by half a point yesterday, with the central banks of Canada, Sweden, Switzerland and China also implementing cuts. To contact the reporters on this story: Mark Gilbert in London at [EMAIL PROTECTED] Gavin Finch in London at [EMAIL PROTECTED] Last Updated: October 9, 2008 09:52 EDT Email this article Printer friendly format --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
