5.2 The ‘parallel’ markets

Box 5.4

London money market rates

UK INTEREST RATES
May 31Over- night	7 daysnotice	One month	Three months	Six months	One year

	11	9	219	219	235	2511	1527
Interbank Sterling	4–	4–	4–4–	4–4–	4–4–	4–4–	4–4–
	16	16	3216	3216	328	3216	1632
	21		21	21	23	25	15
BBA Sterling	4–		4–	4–	4–	4–	4–
	32		32	32	32	32	16
				519	1121	323	1529
Sterling CDs				4–4–	4–4–	4–4–	4–4–
				832	1632	432	1632
				519	1121
Treasury Bills				4–4–	4–4–
				832	1632
				519	1121
Bank Bills				4–4–	4–4–
				832	1632
			51	59	115	311	157
†Local authority deps.			4–4–	4–4–	4–4–	4–4–	4–4–
			82	816	168	416	168
	21	9	59
Discount Market deps.	4–	4–	4–4–
	32	16	816

Av. tndr rate of discount May 26, 4.5129pc. ECGD xed rate Stlg. Export Finance. make up day Apr 29, 2006. Reference rate for

period Apr 29, 2006 to May 31, 2005, Scheme V 4.701%. Finance House Base Rate 5pc for Apr 2006

1

UK clearing bank base lending rate 4–per cent from Aug 4, 2005

2

Up to 1	1–3	3–6	6–9	9–12
month	months	months	months	months

		1	1
Certs of Tax dep. (£100,000)	1	3–	3–	33
		2	4

1

Certs of Tax dep. under £100,000 is1pc. Deposits withdrawn for cash –pc.

2

FT

Source: Reuters, RBS, †Tradition (UK) Ltd.