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London Inter Bank Offered Rate |
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London Inter Bank Offered RateThe rate of interest at which banks lend money to each other - in a sense, the wholesale price of cash rather than the retail price (which is what individuals pay if they want to borrow money).The base rate which banks charge to their retail customers changes in response to changes made by the Bank of England to the Official Rate. LIBOR, on the other hand, changes continuously to reflect supply and demand within the cash and currency markets.Similar MatchesLondon Interbank Offered Rate (LIBOR)London Interbank Offered Rate (LIBOR)The rate of interest that major international banks in London charge each other for borrowings. Many variable interest rates in the US are based on spreads off LIBOR. By contrast with the bid rate LIBID quoted by banks seeking such deposits. London interbank offered rateLondon interbank offered rateThe interest rate that the largest international banks charge each other for loans, usually of Eurodollars. In fact, LIBOR includes rates quoted each day for many currencies, excluding the euro, but it is the rate for dollar loans that is used as a benchmark for other transactions. |
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