Interbank lending rates continue to fall

Overnight euro borrowing costs experienced the greatest movement last week, falling from 2.88% on Friday, December 5, to 2.24% today. On December 10 the European Central Bank cut interest rates for the eurozone by 0.75% to 2%, which led to a fall of 0.61 basis points in the cost of euro lending to 2.33% from 2.94% the previous day.

Three-month euro Libor hit 3.25% today after falling 0.28bp in a week from 3.57% on Friday, December 5, to 3.29% on December 12.

In the US, interbank lending rates have

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