Nov. 10 (Bloomberg) -- The London interbank offered rate, or Libor, that banks charge each other for three-month loans in dollars dropped to the lowest level in four years.

The rate slid almost 6 basis points to 2.24 percent today, the lowest level since Nov. 5, 2004, according to British Bankers' Association data. It was the 21st consecutive decline.

The overnight rate rose 2 basis points to 0.35 percent, still 65 basis points below the Federal Reserve's target rate.

The Libor-OIS spread, a gauge of cash scarcity among banks, narrowed 6 basis points to 170 basis points.

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net

Last Updated: November 10, 2008 06:48 EST