LIBOR: The London InterBank Offered Rates The L ondon I nter B ank O ffered R ates ( LIBOR ) Click Here for a Complete and Comprehensive History of The Monthly LIBOR Rates eInvesting.com - Your Investing Forum. LIBOR: The Definition of LIBOR The L ondon I nter B ank O ffered R ate, or LIBOR , is the interest rate charged when banks in the London interbank market borrow money from each other. This rate is set for dollar-denominated deposits or "Eurodollars" and the most common terms are 1, 3, 6 and 12 months. The LIBOR rates have become international standards or benchmarks for short term interest rates for financial transactions all over the world. For example, the LIBOR is the reference interest rate for the vast majority of Interest Only Loans in The United States. Click Here for a Complete and Comprehensive History of The Monthly LIBOR Rates Click here for the Definition and Critical Information About The Wall Street Journal Prime Rate. Cl