By William L. Watts
LONDON (MarketWatch) -- The rate banks charge each other for short-term loans continued to rise Thursday, with the three-month U.S. dollar London interbank offered rate, or Libor, rising to 0.4841% from 0.4775% on Wednesday. A rise in Libor, which typically tracks closely official interest rates and rate expectations, is seen as a sign banks are becoming reluctant to lend to each other. Interbank borrowing costs have been on the rise over recent weeks amid growing sovereign debt worries in Europe.
