What is LIBOR?
LIBOR (the London interbank offered rate) is essentially the rate at which banks lend money to each other.
Unlike the Bank of England Base Rate, LIBOR is not set directly. Instead it is calculated based on the supply and demand for money as banks lend to each other to balance their books on a daily basis.
It is calculated every business day in several different currencies and many different timespans, ranging from overnight to one year.