Libor

LIBOR (London Interbank Offered Rate) is a benchmark interest rate that reflects the average rate at which major global banks are willing to lend money to each other for short-term loans. It serves as a standard reference for setting interest rates on a wide range of financial products, including mortgages, loans, and derivatives. Essentially, LIBOR provides an indication of the cost of borrowing money in the international financial system, helping lenders and borrowers agree on fair rates based on current market conditions.