Dec. 1 (Bloomberg) -- The London interbank offered rate, or Libor, that banks say they charge each other for three-month loans in dollars rose for a third day.

The rate climbed less than half a basis point to 2.22 percent today, according to British Bankers’ Association data. The overnight rate dropped seven basis points to 1.09 percent, nine basis points above the Federal Reserve’s target.

The Libor-OIS spread, a gauge of cash scarcity among banks, was little changed at 178 basis points. The TED spread, which measures the difference between what the U.S. government and banks pay for three-month loans, was also little changed at 218 basis points.

To contact the reporter on this story: Gavin Finch in London at gfinch@bloomberg.net

Last Updated: December 1, 2008 07:01 EST