LIBOR joins Twitter revolution

LIBOR has been given its very own Twitter feed.

The inter-bank rate is now updated each day on the newly-popular micro-blogging site, giving investors and private banking customers a convenient access point.

LIBOR, set each day by the British Bankers’ Association (BBA), is seen as a key indicator of credit conditions in the financial sector.

The rate attained new importance in 2007, when its rapid rise signalled the onset of the credit crunch.

Banks, including private banks, became far less willing to lend money to each other due to their uncertainty about each other’s financial stability.

This then had a knock-on effect in lending to businesses and consumers, which in turn helped to tip most of the global economies into recession.

John Ewan, the director for BBA LIBOR, said: ’Only 18 months ago LIBOR was virtually unknown to the public: only economists followed its daily moves.

’Today it is as well-known - and as keenly watched - as the Bank of England’s base rate, since so many loans are linked to it.’

Three-month sterling LIBOR dropped from 1.32 to 1.3 per cent yesterday.

This is 0.8 per cent above the Bank of England base rate.ADNFCR-2318-ID-19183367-ADNFCR