Interbank cost of borrowing falls

Posted by 7Star Wednesday, April 1, 2009

The bank-to-bank cost of borrowing dollars, euros and sterling fell on Tuesday as funding strains over the quarter-end eased and ahead of anticipated policy moves from the European Central Bank later this week. The ECB is expected to cut interest rates on Thursday but may also loosen policy in other ways, such as cutting its overnight deposit rate or committing to buy assets like commercial paper, corporate bonds or even government bonds.

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