LIBOR stands for London Interbank Offered Rate. LIBOR is a daily reference rate that declares the interest rate at which the Interbank will be lending money to the other Interbank that are functioning in the wholesale financial market.
The LIBOR will be higher than the rate at which the London Interbank is ready to accept deposits for.
The rates proposed by LIBOR is used as a reference rate for many of the financial vehicles like syndicated notes, floating rate notes, adjustable rate interests, interest rate swaps, forward rate agreements, currencies, short-term interest rate for future contracts etcetera.
The LIBOR forms the guideline value to most active interest rate and liquid interest rate in markets.
LIBOR is made available by the British Bankers’ Association (BBA) after 11:00 am and around 11:45 am each day London time during the 5 working days of the week.
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