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Topic: Business
Number of pages / Number of words: 4 / 1080
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That Barclays was so far out of line mystified the money markets.

"As long as three-month Libor remains below 6.75%, the Bank of England can say that the money markets are working normally," said one analyst. "If it goes above 6.75%, the Bank of England has a problem and might be obliged to do something...


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"If it goes above 6.75%, the Bank of England has a problem and might be obliged to do something.

"So a bank bidding 6.8% is very interesting. The innocent explanation is that that is just what Barclays thinks the rate should be. If you were a conspiracy theorist, though, you might think Barclays was trying to force the Bank's hand...


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