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The Importance of the LIBOR Rate and Its Impact

by coveredcall

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Any investor should know what the LIBOR rate is and how it affects the economy of countries around the world. LIBOR stands for London Interbank Offered Rate. It is the average interest rate given by leading banks in the British capital. It is the primary benchmark for short-term interest rates around the globe. Financial institutions like banks, credit card companies and mortgage lenders determine their own rates by looking at said rates. It is said that more than $350 trillion in financial products are connected to the LIBOR.

Any ordinary person can be affected by the rates set by these London banks. For one, any increase in LIBOR rates can add a few hundred dollars or so to the annual mortgage repayments of a household. It can also affect the loan repayment of a small business. It can influence the saving rates of banks around the world. If the borrowing rates among banks are low, then there is a possibility that these banks won’t offer good returns to its depositors or savers. LIBOR can also affect pension plans, state budgets and rates of student and auto loans, among others.

The rates are calculated daily and issued to the public at 11 a.m. London time. The British Bankers’ Association is in charge of publishing the rates.  The rates are available in different maturities: Overnight, one and two weeks, and one month to one year. It also comes in different currencies like the U.S. dollar, the Euro, the British Pound, the Swiss Franc, the Japanese Yen, the New Zealand dollar, the Canadian dollar and many others.

There are many online sources for investors that want to keep track of LIBOR rates. Barchart is one of the most reliable sources of market information and stock charts, as well as information about current and past LIBOR rates.

Barchart offers very efficient and simple data tracking tools for people who would want to follow the LIBOR rates. Upon visiting, users will be able to see stock charts that show how dollar LIBOR interest rates have performed in four categories: One week, two weeks, one month and six months. There are also tables that investors can view to see how the different LIBOR maturities have performed historically, from as far back as a year ago.

Barchart also offers other relevant market information like real-time and delayed data on stocks and commodities that can guide investors in making wise investing decisions. For more information, visit

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