Dollar Libor May Rise to 0.5 Percent, Barclays Says
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The rate banks say they pay each other for three-month dollar loans may rise to a one-year high if European policy makers fail to stymie investors’ concern the region’s debt crisis is worsening, according to Barclays Plc.
The three-month dollar London interbank offered rate, or Libor, will reach 0.5 percent by the end of the year, Barclays strategist Joseph Abate wrote in a note to clients Sept. 12. Libor was fixed today at 0.34911 percent, according to the London-based British Bankers’ Association. The rate has risen this year from as low as 0.245 percent on June 15.