Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Seasonal Buying Opportunities - 4th Dec 23
Transition From Debt Default And Dollar Demise To A Digital Bridge Currency Recovery - 4th Dec 23
The Future of Trading Has Arrived: Say Hello to Tradu - 4th Dec 23
Adapting to the Fast-Paced World of Online Poker - 4th Dec 23
Israeli Prime Minister Confesses to Being a Palestinian - 4th Dec 23
The Bond Trade - 1st Dec 23
Gold Shines as the Economic Outlook Darkens - 1st Dec 23
Stock Market Santa Rally to S&P 4600+ - 28th Nov 23
Stocks and Silver Have Something to Say about Gold - 28th Nov 23
Can A Stock Market Crash Be Averted... For Now? - 28th Nov 23
Taiwan 2024 Election: Militarization or Development - 28th Nov 23
The Stock Market Trend and the Policy Behind it - 28th Nov 23
Cameco Uranium Stock Hits All-Time High - 28th Nov 23
TSLA, LRCX, TSMC Stock Earnings and Trend Analysis - 26th Nov 23
A Golden Setup: Gold Price Trend Forecast Report - 26th Nov 23
Gold Stocks Winter Seasonal Rally - 26th Nov 23
Elections in South America and Europe Reveal Backlash against Socialism - 26th Nov 23
LMT, JNJ and ASML Stock Earnings and Trend Analysis - 23rd Nov 23
When AI Hallucinates - Top AI Tech Stocks - 23rd Nov 23
Stock Market Ignoring Hawkish Fed - 23rd Nov 23
Stock Market Trend Trajectory into Year End 2023 - 22nd Nov 23
Copper/Gold Ratio: Still Counter-Cyclical - 22nd Nov 23
Learn to Use the FORCE! - How to Really Get Rich - 21st Nov 23
Quad Witching Cracks Stock Market Nuts - 18th Nov 23
Biden Bizarrely Brags About Lower Budget Deficits as US Federal Debt Skyrockets - 18th Nov 23
Silver Price Between a Rock and a Hard Place - 18th Nov 23
The Most Important Chat GPT Tech Reveal of 2023 - 18th Nov 23
AI Tech Stocks Portfolio - 9th Nov 23
Micron MU Stock Trend Analysis - 9th Nov 23
TSMC Stock Trend Analysis - 9th Nov 23
NVIDIA Stock Trend Analysis - 9th Nov 23
The “new ChatGPT” just launched - 9th Nov 23

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Interbank Interest Rates Fall as Central Banks Succeed in Easing Liquidity Squeeze

Interest-Rates / Credit Crunch Dec 19, 2007 - 12:02 PM GMT

By: Nadeem_Walayat

Interest-Rates Concerted action by the worlds central banks is beginning to have an impact on the money market interbank rates. This resulted in a a sharp drop today in the Sterling LIBOR rate down from 6.38% last night to 6.20% today. Similar action by the US Fed and ECB has pushed Euro and US Dollar LIBOR rates significantly lower as the graph below demonstrates.


Yesterday, the European Central Bank pumped in a record $500 billion into the financial system which resulted in a record drop of 0.5% in the 2 week euro interbank LIBOR rate.

The Bank of England similarly pumped in $10 billion at substantially lower interest rates than the interbank rate of 6.53%, the bulk of which was auctioned to bidders at the minimum rate of 5.36% which is below the base interest rate of 5.5%. This resulted in the rate dripping yesterday to 6.38% and today to 6.20%

Further similar auctions over the coming weeks by the worlds central banks are expected to continue to ease the liquidity squeeze which is inline with the Market Oracle analysis of 12th December 07 - Worlds Central Banks to the Rescue with $110 billions

By Nadeem Walayat
Copyright (c) 2005-07
Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading, analysing and forecasting the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 100 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in