Swiss bank UBS agreed today to pay £940m (€1.1bn) to regulators in the biggest penalty yet from the industry’s Libor-rigging scandal.

Money markets are signaling the European Central Bank will cut borrowing costs within the next three months even as the main rate was left unchanged yesterday.

Several banks under investigation for suspected rigging of euro interest rates are co-operating with EU anti-trust regulators in the hope of lower fines, according to two sources.

Banking giant Barclays is to pay penalties of £290m to settle claims that it manipulated the interbank lending rate.

FARMERS want greater transparency from Irish banks on how they publish the interest rates they charge on loans, according to IFA farm business chairman James Kane.

The European Commission has raided several firms active in financial derivative products linked to Euribor, the interbank euro lending rate, on suspicions of a cartel in the market.

EUROZONE interest rate futures are still pricing in a quarter point cut in European Central Bank (ECB) rates by September, with dealers undeterred by an apparent change of tone from the ECB chief.