Central banks failing to calm interbank markets

Interbank borrowing costs in the sterling, euro and dollar money markets shot up on Monday in spite of attempts by central bankers last week to alleviate end-of-year jitters.

Sterling interbank borrowing costs for one-month loans rocketed to almost 100 basis points above the Bank of England's 5.75% benchmark rate.

The British Bankers' Association, a trade body, said that one-month London interbank offered rates (Libor), which measures the average cost of interbank borrowing, for sterling had

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