DEFINITION of 'London Interbank Mean Rate - LIMEAN'

The mid-market rate in the London Interbank market, which is calculated by averaging the offer rate (LIBOR) and the bid rate (LIBID). The LIBOR is the rate at which funds are sold in the market, while the LIBID is the rate at which the funds are purchased in the market.

BREAKING DOWN 'London Interbank Mean Rate - LIMEAN'

The LIMEAN rate can be used by institutions borrowing and lending money in the interbank market, instead of using the LIBID or LIBOR rates, in any lending agreements. It can also be used to gain insight into the average rate at which money is being borrowed and lent in the interbank market.

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RELATED FAQS
  1. What is the difference between LIBOR, LIBID and LIMEAN?

    LIBOR, LIBID and LIMEAN are all reference rates used to benchmark short-term interest rates. The London Interbank Offered ... Read Answer >>
  2. What is the difference between LIBID and LIBOR?

    Both LIBID and LIBOR are rates primarily used by banks in the London interbank market. The London interbank market is a wholesale ... Read Answer >>
  3. Where on the internet can I find LIBOR rate information?

    Learn what the LIBOR is, which website provides general LIBOR information and which website provides ICE LIBOR data going ... Read Answer >>
  4. Who determines the LIBOR rate?

    Learn about what the LIBOR rate is, how it is determined and calculated, and who determines what the LIBOR rate on a daily ... Read Answer >>
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    Discover what happened with the LIBOR scandal, uncovered in 2012, why it was important, and proposals to prevent it from ... Read Answer >>
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