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LIBOR

LIBOR is an abbreviation for the London Interbank Offered Rate. It is the average interest rate that banks charge each other for borrowing money. Lots of different LIBOR rates are calculated each day for a range of currencies and time periods – everything from an interest rate for borrowing Pounds (Sterling) for one day to borrowing Japanese Yen for a year.

These rates are used as the basis for calculating all sorts of things including interest rates on some mortgages.

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