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Some LIBOR info for you...

2»

Comments

  • purch wrote: »
    Under normal circumstances a 6m LIBOR of 1/4 % above Base Rate, and a 3m LIBOR below Base Rate would point to a small cut.


    no change this month, followed by a cut next month then.... ;)
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
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  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Pardon me guys.

    But are some of you thinking there might be the possibility of a BOE cut in terms of 0.50% down, i.e, something like 0.25%?

    I won't pretend to understand the rest.
  • Pardon me guys.

    But are some of you thinking there might be the possibility of a BOE cut in terms of 0.50% down, i.e, something like 0.25%?

    I won't pretend to understand the rest.


    probably not, but at this present moment in time, markets are interpreting that a cut is more likely than a hike....

    more likely to be unchanged...
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
    (MSE Andrea says ok!)
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Ahhhh, cheers. Get the gist now!
  • purch wrote: »
    Under normal circumstances a 6m LIBOR of 1/4 % above Base Rate, and a 3m LIBOR below Base Rate would point to a small cut.


    must also point out that LIBORs are considerably higher to where the markets are trading

    3mth is trading around 0.40
    and 6mth around 0.55
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
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  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    purch wrote: »
    Under normal circumstances a 6m LIBOR of 1/4 % above Base Rate, and a 3m LIBOR below Base Rate would point to a small cut.

    Is the difference QE?
  • purch
    purch Posts: 9,865 Forumite
    must also point out that LIBORs are considerably higher to where the markets are trading

    What ??

    Banks setting their LIBOR's at rates higher than where they actually lend :eek:

    Surely not :rotfl:
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • purch
    purch Posts: 9,865 Forumite
    Is the difference QE?

    One assumes so.

    Under current circumstances interpreting the market and market data is closer to guesswork than it ever was (and it's 90% guesswork at the best of times:eek:)
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • inspector_monkfish
    inspector_monkfish Posts: 9,276 Forumite
    edited 7 September 2009 at 3:48PM
    purch wrote: »
    What ??

    Banks setting their LIBOR's at rates higher than where they actually lend :eek:

    Surely not :rotfl:


    well, usually you will have LIBOR and LIBID rates 0.125pct apart, and markets will trade somewhere inbetween, but currently 3mth cash depo is trading 0.25pct below LIBOR, so currently quite a big difference than usual !!
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
    (MSE Andrea says ok!)
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