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Money markets stay frozen

Government attempts to unjam money markets have continued to have little effect as fearful banks hoard cash.

As shares continue to plunge, overnight lending rates between banks jumped 0.4% to 5.81% - more than 1% above the Bank of England's official 4.5% base rate.

Three-month lending rates - a key measure in pricing mortgages - also rose again to 6.285%, nearly 2% above base rate.

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