Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

Libor

Libor stands for London interbank offered rate. The interest rate at which banks offer to lend funds (wholesale money) to one another in the international interbank market. 

Libor is a key benchmark rate that reflects how much it costs banks to borrow from each other. It is the reference rate for about $350tn of financial products, ranging from interest rate swaps and corporate loans to credit cards, mortgages and savings accounts.

Small daily moves up and down in the Libor rate can cause...