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Interbank Rates

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Description

Interest rates at which banks lend to and borrow from one another.

Interbank rates are the interest rates at which banks lend to and borrow from each other in the interbank market. These rates are crucial for the pricing of various financial products and reflect the health of the banking system. The most well-known interbank rate is LIBOR, though it’s being phased out for new benchmarks like SOFR.

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