The rate banks charge each other to borrow dollars for three months rose above 1 percent on Wednesday for the first time since May 2009 as global interest rates extend their climb on expectations of accelerating growth and inflation.

The London interbank offered rate, or LIBOR, for three-month dollars was fixed at 1.00511 percent, the highest level since 1.00688 percent on May 1, 2009, which was also the last date the rate topped 1 percent.

That compared with Tuesday's rate of 0.99872 percent.

Libor is a global rate benchmark for $350 trillion worth of financial products worldwide.

Investors upgraded their outlook on business activity following Donald Trump's victory in the U.S. presidential election, anticipating that a Republican-controlled White House and Congress would slash taxes, implement infrastructure spending and loosen regulations.

That rosier view is also coupled with the Federal Reserve's signal last month that it might raise interest rates up to three times in 2017 as the economy approaches full employment and inflation heads towards its 2 percent goal.