Did the Bank of England Encourage Banks to Fudge LIBOR? (A Simple Graph)

We may never know for sure, but the below graph from The Economist is very interesting. That the rate of interbank borrowing was going down during the last part of 2008 is ridiculous. I remember that time very well. It is seared into my brain. These banks were staring at their end, yet it got easier to borrow money from one another? I don’t think so.

Source: Economist.com http://www.economist.com/blogs/graphicdetail/2012/07/daily-chart-3