Just another straw on the Camel’s back.
What is LIBOR and why should we care? Let’s start with the first part of the question.
The London Interbank Offered Rate is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks. It is usually abbreviated to Libor (/ˈlaɪbɔr/) or LIBOR, or more officially to BBA Libor (for British Bankers’ Association Libor) or the trademark bbalibor. It is a benchmark, along with the Euribor, for interest rates all around the world.
Libor rates are calculated for different lending periods: overnight, one week, one month, two months, six months, etc., and published daily at 11:00 by the British Bankers’ Association. Many financial institutions, mortgage lenders and credit card agencies set their own rates relative to (and typically higher than) Libor.
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