Overnight rate unchanged despite BoE injection

The Bank of England's attempt to lower sterling short-term interbank borrowing costs by adding £5 billion ($10 billion) to the money markets looks to have failed.

The Bank injected the £5 billion at bank rate on Monday 17 March after the London Interbank Offered Rate (Libor) for overnight loans in sterling surged by almost 30 basis points over the weekend from 5.31% to 5.59%. But the move appeared to have had little impact, with overnight borrowing costs falling by just one basis point.

The Bank

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