The Serious Fraud Office unexpectedly closes an investigation into interest rate fraud.

An investigation into the rigging of Libor, the benchmark interest rate that tracks the cost of borrowing cash, has been unexpectedly closed.

The decision comes despite evidence that implicates the Bank of England.

It means no one will now be prosecuted in the UK for so-called “low-balling”, where banks understate interest rates they pay to borrow cash.

The Serious Fraud Office (SFO) said its decision followed a detailed review of the evidence.

Thirteen traders and money brokers were prosecuted over four years by the SFO in connection with rigging Libor.

Six have been prosecuted by the US Department of Justice (DoJ).

A further 11 traders have been prosecuting for manipulating Euribor, the eurozone equivalent of Libor. The SFO said aspects of its Euribor investigation remain open.

In a statement, the SFO said: “Following a thorough investigation and a detailed review of the available evidence, there will be no further charges brought in this case. This decision was taken in line with the test in the Code for Crown Prosecutors.”

The code states that the evidence must support a realistic prospect of conviction and must be in the public interest.

www.bbc.com/news/business-50107320

700 views