Interest rates that Kenyan banks use to lend money to each other fell to the lowest level in two months after the government released cash to local counties, boosting liquidity.
Russian banks may need to pay as much as 6 percent to borrow overnight from other lenders by the end of September because of concern that interbank rates will rise in Europe, Alfa Bank said.
Vietnam’s five-year bonds rose on speculation interbank interest rates will continue to fall, spurring demand for government securities. The dong was steady.
Norway’s central bank is intensifying efforts to bring down interbank rates after last month’s decision to shelve monetary tightening failed to cap the borrowing rates lenders charge each other.
Vietnam’s government bonds dropped as interbank rates rose, signaling banks have fewer funds to invest in debt.
Chilean short-term bank borrowing costs continued to rise today even after the central bank announced an extra liquidity package aimed at bringing rates down.
China’s interbank rates, which rose to a record yesterday, will be under upward pressure as more than 1.5 trillion yuan ($245 billion) of wealth management products mature this month, according to Fitch Ratings.