The LIBOR rate (or London InterBank Offered Rate) is used to calculate the interest rate for many types of loans, both commercial and consumer. The interest rates of trillions of dollars in debt are tied to the LIBOR rate. Typically, a borrower pays a specified spread over the LIBOR rate (for example, LIBOR plus 1.00%), depending on lender’s perceived risk of the loan.
The LIBOR rate is calculated by the British Bankers Association, and comes in several different durations, such as the 1 month LIBOR rate, 3 month LIBOR rate, and 12 month LIBOR rate. The rate is a measure of the average interest rate that banks around the world lend to each other. Each morning, banks submit specifying what it costs them to borrow money. Based on this data, an average is calculated, throwing out the highest and lowest quotes to eliminate outliers and reduce the possibilities for manipulation of the rate.
Historical data for the LIBOR rate can be found at the British Bankers Association website. ConsumerLending.org has a LIBOR forecast based on the futures market’s expectation of the LIBOR rate.