LIBOR says the credit crunch isn’t over yet

Inter-bank rates are still on the rise, despite the BoE's £50bn intervention. And that means credit's not going to be any cheaper for the rest of us any time soon, writes Rob Mackrill.

The worst of the credit crunch is over isn't it?

Well, we start to wonder when we spy LIBOR going up again. LIBOR is the gauge by which banks lend to one another and the benchmark to which many loans are linked. The higher it is the more banks have to pay for their cash, which filters down to the rest of us in higher credit costs.

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