Joint effort failing to counter interbank tension

Interbank rates stayed high and markets plummeted on Thursday in spite of the collective action launched by five of the most powerful central banks on Wednesday.

Interbank rates for three-month dollar loans held at 5%, 75 basis points about the federal funds rate. Euro-denominated lending also failed to respond, with the three-month interbank rate staying put at 4.95%, 95 basis points higher than the European Central Bank's benchmark rate. Overnight and 12-month interbank rates for dollar lo

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