Libor Takes A Tumble 3.21%

MortgagePerson

At the start of last week the rate stood at 5.77%, so as a result of the 1.5% in base rates the Libor has gone down by 1.27%, giving lenders the chance to cut rates. The overnight Libor rate has now fallen to 3.21%.

This should now allow the banks to borrow monies cheaply, and pass on reductions on interest direct to borrowers

LIBOR Rate - is the rate at which banks lend to each other

Baz_2

Doesn't matter what the rate is, if they still won't lend to each other nothing will change will it.

Fingers crossed some cheap 5 year 4.5% fixes come along.

nobblyned

LIBOR is the de-facto rate at which they are willing to lend each other.

So hopefully fixes will be getting cheaper soon as you say.

MortgagePerson

They should do, as even although the Bank Base Rate came down, banks lending to each other was high, so nothing startling was happening It will now

TREVORCOLMAN

Apparently there are 6 savers for every borrower in this Country. But its those in debt who make the most noise, therefore lots of hoots when int rates go down - those who have saved all their lives dont even get a look in.

WestonDave

Overnight LIBOR is less relevant, its 3 month LIBOR which is the really key number and that is standing at 4.42% down .075% from Friday so not really shifting other than the 1% jump down straight off last week.

unite79

I would expact to see the 3 month value get affected towards the end of week.

Baz_2

Where can you find upto date LIBOR rates online?

Does the BBA site show old info?

RomansProperties

The 3 month on Friday was 4.49 so down a lot on the Previous day
How do you find the 3 month LIBOR on the day?
I can only get it on the night from
http://markets.ft.com/ft/markets/reports/FTReport.asp?dockey=MNY-071108

speedbird1973

TREVORCOLMAN wrote: »

Apparently there are 6 savers for every borrower in this Country. But its those in debt who make the most noise, therefore lots of hoots when int rates go down - those who have saved all their lives dont even get a look in.

That's the point Trevor. We're on the brink of recession. To reduce the impact of the recession the government wants you to spend, not save.

Think big picture. It's not about savers and borrowers, it's about increasing the money flowing through the economy. With low interest rates savers are more inclined to spend and borrowers have more money available in which to spend.

ManAtHome

speedbird1973 wrote: »

With low interest rates savers are more inclined to spend and borrowers have more money available in which to spend.

Alternative theory - as interest rates are lowered in panic, borrowers pay down their debts and savers have less interest to spend...