MSE News: Base Rate held at 0.5% once again

inspector_monkfish

Thrugelmir wrote: »

Banks primarily only need to borrow overnight to balance their books for regulatory liquidity requirements.

If interbank is low then QE has returned liquidity to the markets as banks don't need the funds.

You know how LIBOR is set don't you :rolleyes:

sorry, i edited my previous thread whilst you were replying....


indeed i do, i set the LIBORs for the bank i work for...


GBP is not really low compared to other currencies.

EUR Base rate = 1.00
o/n trades around 0.20/0.15
ECB only pay 0.25 to banks

USD Base rate = 0.25/0.00
o/n trades arouns 0.15/0.12
FED pays 0.25

GBP Base rate = 0.50
o/n trades around 0.45/0.40
BOE pay 0.50