September 4, 2007: London Interbank Rate Hits Nine-Year High

The rate at which British banks lend to each other—known as the London Interbank Offered Rate (Libor)—rises to its highest level in almost nine years. The three-month loan rate hits 6.7975 percent, which is even higher than the Bank of England’s emergency lending rate of 6.75 percent. This suggests that banks are reluctant to lend money to each other because of the emerging credit crisis. [BBC, 8/5/2008]