Interbank rates edge down again

Money market tensions eased further on Friday, signalling that the joint action announced by five of the most powerful central banks last week is having some impact in narrowing spreads between interbank and central banks' benchmark rates.

Since the co-ordinated effort was announced last Wednesday, interbank rates in the euro, sterling and dollar markets have dropped for most maturities.

Three-month borrowing rates, the source of the most anxiety, have fallen across the board. Sterling rates