What Is the Definition of the LIBOR Rate?

Answer Many interest rates that are important to our daily lives use LIBOR as their benchmark rate. Understanding what LIBOR represents and how it is calculated is key to understanding how these interest ... Read More »

Top Q&A For: What Is the Definition of the LIBOR Rate

What is the meaning of LIBOR rate?

LIBOR stands for London Inter-Bank Offer Rate, which is the interest rate charged by banks to other banks for loans. The loans can be for terms from one day to five years. The LIBOR changes through... Read More »

What is the LIBOR interest rate?

The LIBOR interest rate is the average rate at which major London banks can borrow money from other banks on a given day. There are many LIBOR rates. The rates change every day.IdentificationLIBOR ... Read More »

Can the LIBOR rate go negative?

Yes. The LIBOR, or London Interbank Offered Rate, is the rate at which banks lend money to each other overnight. Although it seems counter-intuitive that banks would give money to each other and lo... Read More »

Is there a minimum LIBOR rate?

There is no minimum rate for LIBOR, also known as the London Interbank Offering Rate. LIBOR is calculated by the British Banker's Association based on a survey of contributor banks and represents... Read More »