Demand in the US “might be stabilising”, Ben Bernanke said yesterday in guardedly optimistic remarks suggesting the recession could end this year.
The Federal Reserve chairman's comments came as main money market rates fell to record lows, underscoring recovering confidence among investors and bankers.
The three-month dollar Libor – the interest rate banks charge each other for such loans – yesterday fell below 1 per cent for the first time. Sterling and euro rates were also lower. These rates underlie borrowing rates for households and businesses.
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