Representative LIBOR rates will mostly be axed by the end of the year.
LIBOR (the London InterBank Offered Rate) is a benchmark rate which reflects the rate major banks lend to each other for short term loans.
It is often used as a benchmark for setting other rates such as mortgage rates. It’s end has been widely flagged.
The FCA announced this week the dates after which representative LIBOR rates will no longer be available.
The FCA said: “This is an important step towards the end of LIBOR, and the Bank of England and FCA urge market participants to continue to take the necessary action to ensure they are ready.”
LIBOR rates will no longer be representative immediately after 31 December for all sterling, euro, Swiss franc and Japanese yen settings and the 1-week and 2-month US dollar settings.
Immediately after 30 June 2023 LIBOR will be scrapped