Libor lending rate edges up

The cost of three-month dollar loans edged up from record lows Wednesday after falling consistently for the past month amid rising hopes that the worst of the global recession has passed.

The British Bankers’ Association said the rate on three-month loans in dollars — known as the London Interbank Offered Rate, or Libor — rose 0.01 of a percentage point to 0.67 percent.

Meanwhile the equivalent rate for three-month loans in euros — known as the European Interbank Offered Rate, or Euribor — and the British sterling rate were unchanged at at 1.27 percent and 1.28 percent, respectively.

Interbank lending rates are important for the wider economy because they determine the cost of loans for households and businesses. They shot higher during the credit crunch but have been coming back down in recent weeks in the wake of massive efforts by governments and central banks to get lending going again.