Interbank rates finished marginally higher yesterday than their Friday close as weak Southeast Asian currencies and stock markets overrode any positive sentiment brought about by the Government's attempt to stimulate the local economy. Traders said Government initiatives announced on Friday were seen as merely cosmetic, without a long-term positive impact, and failed to provide enough impediments for rates to trend downward. Nor did the Hong Kong Monetary Authority's move to allow banks to use their holdings of Exchange Fund notes as collateral for interbank borrowing provide an immediate relief. The rates, after touching their day-lows in the morning session, rose again rapidly after local trading finished and London trading began. The overnight rate finished at 5.75 per cent, 75 basis points lower than its Friday close. The one-month rate, although unchanged from its Friday close at 8.75 per cent, rose to 9.1 per cent when London trading began. The three-month rate also finished its local session unchanged at 8.75 per cent before spiking higher in London at 9.15 per cent. Hongkong Bank, Bank of China, Standard Chartered Bank, Hang Seng Bank, Dao Heng Bank and Bank of East Asia acted as market makers for the interbank borrowing backed by Exchange Fund notes. Traders said very few transactions were done as banks needed some time to familiarise themselves with the mechanism.