Libor

Libor (the London Interbank Offered Rate) is a benchmark rate used as an index in setting many consumer variable rate loans, including some credit cards. The Libor itself is based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). Like the consensus prime rate, Libor is often used as a referenced rate on which many variable interest rates are based.