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11.04.2017 - 13: 15

The Bank of England was accused of trying to influence the interbank rate

BBC Panorama TV Reporters found the secret recording, which implies that the Bank of England tried to influence the performance of the London Interbank Offered Rate (Libor) during the financial crisis.

Libor - is a weighted average interest rate on interbank loans, which has a significant impact on interest rates on loans for households, including mortgages.

The rate is set as follows: representatives of major banks daily call their level of Libor, then the arithmetic mean is calculated.

On the record of the 29 2008 October, the top manager of Barclays Mark Dirlav (Mark Dearlove) asks the employee responsible for the bet Peter Johnson Bank to lower the rate. "You will not like it, but we have a lot of pressure from the British government and the Bank of England over the decline in Libor", - he says.

Dirlava interlocutor said that such a decrease would be contrary to the rules according to which the rate should be established only on the basis of the cost of borrowing.

"I have to lower the rate below the actual level at which it seems to me, we can make?" - he asked the chief.

"The reason is that it is involved in the Bank of England, and all the other people I like and you do not want to do that, but these guys just told to do..", - said Dirlav.

Top managers of himself refused to comment on the record. Johnson later was sentenced for alleged manipulation of Libor at the request of traders. The Bank of England rejected any attempts to influence the rate.

As noted by BBC Panorama, on the same day when Dirlav and Johnson discussed the bid, a conversation between Paul Tucker, who later became executive director of the Bank of England, and the former head of Barclays Bob Diamond. They also discussed the Libor.

Tucker and Diamond in 2012 was questioned by a parliamentary commission on the underreporting of Libor. Both of them then said they only recently learned that the rate artificially low.

A source: BBC Russian Service

Tags: UK Banks, Economy, Central Bank