Wednesday, November 4, 2009

'Little room for Libor to fall ...'

... the failure of banks to inc-rease lending to businesses and consumers, which is critical for econ-omic recovery, could put the money markets under strain.

In short, the money market - the first link in the borrowing chain - may appear to be repaired but, without circulation of funds to consumers and businesses, confidence could start to erode, sending Libor higher.

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