Libor: Britain's most important interest rate

By Deputy Editor Tim Bennett Dec 09, 2011

Tim Bennett

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More important than the Bank of England's base rate, 'Libor' influences every aspect of  your life. Here, Tim Bennett explains what Libor is, how it's calculated, and why it matters so much to you.

 

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Published in Video tutorials | More articles by Tim Bennett

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  • 1. jc.

    (10 December 2011, 11:38AM)  Complain about this comment

    Keep em coming tim...Very informative and well brocken down.

  • 2. Wendy

    (10 December 2011, 12:28PM)  Complain about this comment

    Hi Tim, how does the LIBOR relate to the variable home interest rate?

  • 3. Tim Bennett

    (13 December 2011, 09:18AM)  Complain about this comment

    Wendy - in a nutshell, moves in LIBOR tend to be reflected in swap rates (see my swaps video) which in turn get reflected in variable mortgage rates - so as LIBOR rises so do variable home loan rates. The banks make good money from mortgages so unfortunately the rate you pay will always be above LIBOR.

  • 4. Himanshu

    (22 May 2012, 03:39AM)  Complain about this comment

    Hi Tim - you are doing an awesome job ..kudos.
    My question - Does LIBOR has an impact on the Debt market as well?

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