Reference Rate

A reference rate is a rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house price index or an unemployment rate. Parties to the contract choose a reference rate that neither party has power to manipulate.

Read more about Reference RateExamples of Use, Reference Rates For Short Term Interest Rates

Other articles related to "reference rate, rate, reference rates, rates":

Libor - Scope
... The Libor is widely used as a reference rate for many financial instruments in both financial markets and commercial fields ... There are three major classifications of interest rate fixings instruments, including standard interbank products, commercial field products, and hybrid ... Standard interbank products Forward rate agreements Interest rate futures, e.g ...
Reference Rates For Short Term Interest Rates
... Examples of reference rates for short term interest rates are Euribor - Euro Interbank Offered Rate LIBOR - London Interbank Offered Rate SIBOR - Singapore ...

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