UK interbank lending rates ease slightly
The rates at which banks lend to each other in the United Kingdom eased slightly after the Bank of England took measures to ease liquidity pressures.
The key three-month rate dropped further below the 6.00 percent threshold, declining to 5.93 percent from 5.95 percent yesterday, suggesting banks are slightly more willing to lend to each other as worries over the credit-worthiness of counter-parties improve.
The overnight contract, generally the most closely aligned to the Bank of England's 5.25 percent benchmark rate, decreased to 5.21 percent from 5.25 percent.
The Bank of England earlier today said it increased the amount of three-month money it will auction in April to 15 billion pounds from the 10 billion pounds it previously offered.
Although the quality of collateral the Bank of England will accept will remain unchanged from previous auctions, the increased sum is likely to ease liquidity pressures in the financial sector.
The key three-month rate dropped further below the 6.00 percent threshold, declining to 5.93 percent from 5.95 percent yesterday, suggesting banks are slightly more willing to lend to each other as worries over the credit-worthiness of counter-parties improve.
The overnight contract, generally the most closely aligned to the Bank of England's 5.25 percent benchmark rate, decreased to 5.21 percent from 5.25 percent.
The Bank of England earlier today said it increased the amount of three-month money it will auction in April to 15 billion pounds from the 10 billion pounds it previously offered.
Although the quality of collateral the Bank of England will accept will remain unchanged from previous auctions, the increased sum is likely to ease liquidity pressures in the financial sector.
