Libor fixing to be investigated by international body

The world's leading central banks have agreed to set up a joint body to look into the Libor interest rates, Sir Mervyn King, Bank of England Governor, said yesterday, following a rate-rigging scandal that involves investigations into a number of major banks.

Sir Mervyn, pictured, made the statement after a meeting with other central bankers at the Bank for International Settlements (BIS) in Basel, Switzerland, on Sunday.

"The BIS Governors look forward with great interest to the recommendations of the (British) Wheatley Libor Review, and to the reports of other official groups examining reference rates used in financial markets," Sir Mervyn said.

"The BIS Governors have agreed to set up a group of senior officials to take forward examination of these issues, and to consult with the market in order to provide input into the wider official debate co-ordinated by the Financial Stability Board," he added.