Category: Interest Rates

Official Interest Rate


The official interest rate of the UK is called LIBOR (London Interbank Offered Rate). It is a reference rate based on the rate of interest at which banks borrow funds from other banks in the inter-bank market or the London wholesale money market. This official interest rate is used as a reference rate for financial vehicles including shorter-term interest rate futures contracts, forward rate agreements, interest rate swaps, floating rate notes, inflation swaps, currencies, variable rate mortgages and syndicated loans.[br]