Interbank spreads to stay above pre-crisis levels

A fundamental shift in money-market attitudes will mean spreads between interbank and official rates remain greater than their pre-August levels for the foreseeable future, the Bank of England's head of markets said on Wednesday.

Paul Tucker, the executive director responsible for markets at the Bank of England, said that the historical-average spread of ten to 20 basis points between three-month sterling loans and overnight-index-swap rates was likely to be confined to the past because market