Three-month Libor falls to lowest level since 2004


The London interbank offered rate, or Libor, that banks say they charge each other for three-month loans in dollars fell to the lowest level since June 4th, 2004, according to the British Bankers’ Association.

The rate slid one basis point to 1.40 per cent, the BBA said today. The overnight rate dropped almost two basis points to 0.11 per cent.

The Libor-OIS spread, a gauge of the reluctance among banks to lend, narrowed two basis point to 121 basis points.