Daily Management Review

LIBOR rate hits the highest since 2008


The three-month interbank lending rate LIBOR jumped by 2.5 basis points, to 2.83 percent, reaching a record high since 2008, the height of the global financial crisis.

According to experts, the reason for this traders’ readiness for a gradual increase in the Federal Reserve System's (FRS) key rate and no longer anticipate a softening of this signal in the near future.

The Fed officials' repeated claims that there hasn't been a sufficient decline in inflation, which suggests that the rate would keep rising, were a major contributing factor.

At that, SOFR (Secured Overnight Financing Rate), a different indication that has gradually taken the place of LIBOR, is still one of the most significant indicators since hundreds of billions of dollars' worth of loans, bonds, and other financial instruments are linked to it.

source: ft.com