London Interbank Offer Rate. An interest rate at which banks can borrow funds, in marketable size, from other banks in the London Interbank Market. The world’s most widely used benchmark for short-term interest rates. It’s important because it is the rate at which the world’s most preferred borrowers are based. Calculated for 5 currencies and 7 borrowing periods ranging from overnight to one year and are published each business day by Thomson Reuters.