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Banks’ borrowing costs drop
The cost of borrowing between banks fell the most in almost two months yesterday in a sign that confidence is returning to markets.
The London interbank offered rate (Libor) that banks charge each other for three-month loans dropped to pre-March levels indicating banks are now more willing to lend cash.
Three-month dollar Libor rates fell to 0.883 per cent, euro Libor dropped to 1.271 per cent and sterling Libor fell to 1.383 per cent.