Pegasus Capital

The £ 3mth LIBOR fix has been moving higher without any notion of change to BOE rate. As rates have been moving up generally, and there is always additional premium across the year-end turn, it is easy to overlook that higher credit risk is now appearing in the £ LIBOR fix. Market expectations for base rates over next 12 months have fallen back to zero, but £3m LIBOR is at a new cycle high of just above 0.9%

£3Mthfraois
£3M Libor 06Dec18

PegasusCapital - 06/12/2018

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A view from the Bridge - August 2023

The Bank of England raised base rates by 25bp to 5.25% at yesterdays meeting, in line with a recently revised consensus which had been broadly split between 25bp or 50bp prior to the softer inflation and growth data over the past couple of weeks.

PegasusCapital - 04/08/2023