12
Jun
Libor changes may have 'positive impact' on mortgage market
Changes to the London Interbank Offered Rate (Libor) could have a
positive impact on the mortgage market, a spokesperson for
Moneyfacts.co.uk has suggested.
Darren Cook made his comments following the announcement of a
number of changes to the Libor, which sets the interest rate at
which banks lend to each other.
The British Banker's Association (BBA) revealed that from now on
there will be a larger number of contributors to the rate-setting
panels, wide membership of the Foreign Exchange and Money Markets
Committee and tighter scrutiny of the rates contributed by banks
into the setting mechanism.
Mr Cook suggested that "under current market volatility, tighter
scrutiny of the BBA Libor rate contributors will strengthen views
and confidence of this index as being a true reflection of current
sentiments within the financial markets".
He added that he hoped this would increase mortgage products' shelf
life.
