Feb 1 (Reuters) - A key gauge of interbank borrowing costs fell for a fourth consecutive week to its lowest level since late November in the wake of the U.S. Federal Reserve’s signal that it is no hurry to raise interest rates further.
The London interbank offered rate (LIBOR) to borrow dollars for three months fell 1.9 basis points this week, matching its longest stretch of weekly declines since May.
LIBOR is the benchmark rate for $200 trillion worth of dollar-denominated financial products, mainly interest rate swaps and floating-rate loans.
On the day, three-month dollar LIBOR slipped to 2.73263 percent, the lowest level since Nov. 28, from 2.73750 percent on Thursday.
Back in December, LIBOR reached its highest in more than decade, propelled by rate increases by the Fed, rising U.S. government borrowing and a shrinking Fed balance sheet.
On Wednesday, the Fed said it would be “patient” before ratcheting key lending rates higher. Fed Chairman Jerome Powell said the case for rate increases had “weakened” in recent weeks.
The U.S. central bank also signaled it was prepared to adjust the normalization of its balance sheet.
Reporting by Richard Leong; editing by Jonathan Oatis