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Libor continues to fall in 2009

Libor rates continued to fall over the Christmas period and into the New Year.

Three-month Libor fell below 3 per cent on December 19, and continued to fall rapidly to 2.7 per cent today.

The all-important rate is only 0.7 per cent above base rate, but may fall behind once again if the Monetary Policy Committee choose to drop base rate once again on Thursday.

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