Interbank rates ease further

The cost of borrowing three-month funds in interbank markets on Tuesday extended the declines registered over the preceding six trading days.

The spread between various interbank rates and the rate banks are charged for borrowing from central banks on Tuesday reached their lowest level since the collapse of Lehman Brothers in mid-September.

Central bankers monitor these spreads closely as they look for signs that confidence is slowly returning in response to the measures they and their counter

To continue reading...