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General TradingI
Interbank Rates
The interest rates at which banks lend to and borrow from each other in the short-term interbank market. These rates serve as benchmarks for many other financial products and lending rates.
Example
“For example, if the LIBOR interbank rate rises from 4.5% to 5.0%, it signals tightening liquidity between banks and can lead to higher borrowing costs for businesses and consumers.”