UK interbank overnight borrowing rate remains high

The rates at which banks lend to each other in the UK remains higher across the board, particularly on an overnight basis, as uncertainties plague global financial markets.

The overnight contract, generally the most closely aligned to the Bank of England's 5.25 pct benchmark rate, inched down to 5.58 pct after jumping to 5.59 pct yesterday.

The three-month London Interbank Offered Rate (Libor) -- a key indication of banks' willingness to lend to each other over the medium term -- rose to 5.97 pct from 5.96 pct while the one-month rate was up at 5.75 pct from 5.72 pct.

The Bank of England yesterday auctioned £5 billion in three-day money in order to reduce liquidity problems in money markets, it offer was well over-subscribed.