LIBOR: An Enthralling Saga!

From creating history to becoming history LIBOR is one of the most important benchmark interest rates at which borrowings take place in the international interbank market for short-term loans. LIBOR is a worldwide accepted benchmark and stands for London Interbank Offered Rate. LIBOR is also the basis for consumer loans in countries around the globe, and thus impacts consumers just like financial institutions. The interest rates on various credit products such as credit cards, car loans, and adjustable-rate mortgages fluctuate based on the LIBOR rate. This change in rate helps determine the ease of borrowing between banks and consumers. As…...