LIBOR
The London Interbank Offered Rate, formerly a leading interest rate benchmark set daily from estimates by up to 18 global banks across multiple currencies, including GBP, USD and EUR. It has been phased out in favour of risk-free rates such as SOFR, SONIA and ESTR.
Related terms
SOFR (Secured Overnight Financing Rate)
The overnight interest rate for US dollar-denominated loans and derivatives, indicating how much a bank pays to borrow cash overnight from another institution.
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The effective overnight interest rate banks pay to borrow sterling from other financial institutions, used for overnight funding of trades that occur in off-hours.
Read full definitionEURIBOR
The Euro Interbank Offered Rate, an interest rate benchmark for the eurozone calculated from the average rates eurozone banks offer each other on unsecured short-term loans of various maturities under one year. Quoted daily, EURIBOR rates are used in many financial products, including OTC derivatives.
Read full definitionIBOR (Interbank Offered Rate)
A type of interest rate benchmark representing an average of the rates banks offer each other for loans of various maturities.
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Account Deficit
A negative balance of trade or payments, where a country’s imports and outgoing payments exceed its exports and incoming payments.
Read full definitionAsian Central Banks
The monetary authorities of Asian countries. They have become increasingly active in major currencies as they manage growing pools of foreign currency reserves arising from trade surpluses, and their market interest can influence currency direction in the short term.
Read full definitionBank for International Settlements (BIS)
A global financial institution owned by central banks, based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City. Its original members were Switzerland, Germany, Belgium, France, Britain, Italy, the United States and Japan.
Read full definitionBank of China
One of China’s four largest state-owned commercial banks. It maintains close relations with the People’s Bank of China in management, administration and cooperation across several areas.
Read full definitionBank of England (BoE)
The central bank of the United Kingdom, acting as the government’s bank and lender of last resort. Headquartered in the City of London, it issues currency and oversees monetary policy, making it the UK equivalent of the US Federal Reserve.
Read full definitionBase Rate
The interest rate a central bank, such as the Bank of England or Federal Reserve, charges to lend money to commercial banks. Adjusting the base rate helps a central bank regulate the economy by encouraging or discouraging spending as required.
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