What in the World is LIBID?
Picture this: You’re at an exclusive auction where the prize is… money itself! The LIBID, or London Inter Bank Bid Rate, is quite like that. Except, instead of mustachioed auctioneers, you have serious-faced bankers bidding for the chance to borrow each other’s pounds and pence.
The cost of borrowing is pegged to this mystical thing called an interest rate, and LIBID is the rate banks kindly whisper when they want to borrow from each other on the London interbank market — yes, it’s as posh as it sounds. If you’re thinking
