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London Interbank Offered Rate
The interest rate applied by major international banks in London for each other's short-term loans.
(1) Except for the United Kingdom, such deposits are in Eurocurrencies, most often in Eurodollars.
(2) Generally considered as the cost of short-term bank funds, the LIBOR rate is most often used as a reference rate, to which percentage points are added to determine the interest rate for other types of loans.
Translations
Synonyms and variations
- LIBOR
- LIBOR rate