Monday, January 3, 2011


The LIBOR (London Inter-Bank Offered Rate) is the main market reference rate in the UK, but which is widely used in global financial markets as a reference rate for bond floating rates, swap rates, currency market operations, and so-on. It's status as a reference rate is based on its characteristics such as being the interest rate that the largest and highest credit quality banks charge each other for loans - thus with banks being major players in financial markets, it is a key financing and important interest rate. The spread between the LIBOR and the LIBID (London Inter-Bank Bid Rate) is usually about 12.5 basis points.

Synonyms: London Inter-Bank Offered Rate, Reference rate, Market interest rate

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