Bank Woes Ensure Interest Rate Will Stay Low

purch

15.9bln deposited
63mln borrowed

That is showing how the whole system is just not functioning.

Even if the 63 bars were borrowed from the wholesale market rather than from the ECB, it would still leave nearly 16 yards sitting around doing basically nothing.

Until that money is put to 'proper' use nothing much will change in the Economy.

inspector_monkfish

purch wrote: »

That is showing how the whole system is just not functioning.

Even if the 63 bars were borrowed from the wholesale market rather than from the ECB, it would still leave nearly 16 yards sitting around doing basically nothing.

Until that money is put to 'proper' use nothing much will change in the Economy.

precisely!
if the banks don't even trust each other, how can we expect them to lend to joe public?

lemonjelly

inspector_monkfish wrote: »

i may be wrong, but i think what lemonjelly is getting at, is...... if LIBORs are coming down, why aren't the Bank's mortgage rates ?

well thats what i think he is getting at anyway

Inspector you are quite correct.

I don't 100% understand LIBOR, and I know banks have to make a profit, but I question whether they're playing fair here.

Thanks for this stimulating thread inspector - I find your contribution here most enlightening (& that isn't just the daily mash!;))

inspector_monkfish

lemonjelly wrote: »

Thanks for this stimulating thread inspector - I find your contribution here most enlightening (& that isn't just the daily mash!;))

oh stop it silly , you make me blush !;)

inspector_monkfish

Just for info,
LIBORs continue to tumble again today
all down 1 to 3pts in GBP, EUR and USD.

we have obviously had no rate cuts, but in the past month,
1yr GBP is down 15pts
1yr USD is down 26pts
1yr EUR is down 15pts (but we have had a 25bp rate cut, which was probably factored in anyway)