March 19 (Bloomberg) -- The London interbank offered rate, or Libor, that banks say they charge each other for three-month loans in dollars fell by the most since Jan. 13, according to the British Bankers’ Association.

The rate dropped about six basis points to 1.23 percent today, its seventh consecutive day of declines, the BBA said.

The Libor-OIS spread, a gauge of bank reluctance to lend, slid seven basis points to 100 basis points.

To contact the reporter on this story: Matthew Brown in London at mbrown42@bloomberg.net

Last Updated: March 19, 2009 07:39 EDT