Mubasher: The three-month rate at which banks on average charge one another to borrow funds saw its biggest single-day drop in 10 years.

The three-month London interbank offered rate (LIBOR) to borrow dollars, key barometer of interbank borrowing costs, plunged 4.063 basis points (bps) to 2.697%, the largest since May 2009, the ICE Benchmark Administration said on Thursday.

LIBOR is the benchmark rate for $200 trillion worth of dollar-denominated financial products, mainly interest rate swaps and floating-rate loans.

It is worth noting that Bank of England (BOE) kept its interest rate on hold, while Reserve Bank of India (RBI) decided to reduce the repurchase rate by 25 bps to 6.25%.

In the US, the Federal Reserve maintained its interest rates at their current levels in its first policy meeting this year, shifting to a more “patient” stance on monetary tightening policy.