Money market rates set in London eased on Monday as central banks and governments in Europe and the UK intensified efforts to thaw frozen lending conditions.

Benchmark lending London Interbank Offered Rates are expected to ease further from their highly elevated levels as European policy makers look to implement a guarantee for bank debt of up to five years until the end of 2009. The UK will also guarantee new bank debt of up to three years as it recapitalises some of its banks.