Reuters: Euribor money market rates fix at near 7-year high (December 4, 2007)

Benchmark interbank lending rates in the euro zone rose to near seven-year highs on Tuesday, showing strong demand for liquidity early next year as well as around year-end.

Two-month Euribor an average of daily quotes offered by banks to lend money to each other, rose to 4.856 percent, from 4.840 percent on Monday, the highest since the end of December 2000.

Three-month funding fixed at 4.858 percent from 4.839 percent, also the highest since late 2000, and one-month Euribor fixed at 4.848 percent, from 4.834 percent on Monday, the highest since April 2001.

Still, with inflation slightly above 2%, inflation expectations below 3%, and the ECB base rate at 4%, things are not that bad for the Eurozone, are they?

We have met the enemy, and he is us — Pogo