According to a recent The Financial Times article, “the BoE’s deputy governor for markets and banking, said in a speech on Wednesday that it was “last orders” for the interest rate and that banks must stop adding to their post-2021 LIBOR exposures. By some measures, he added, the task is on a bigger scale than preparing for Brexit.”
The issue being talked about? LIBOR! LIBOR, which stands for the London Interbank Offered Rate, is a benchmark interest rate, representing the amount that banks pay to borrow unsecured from each other. But LIBOR’s days are numbered. It is due to be phased out in two years.