WHAT IS EURIBOR?
Euribor is short for Euro Interbank Offered Rate. The Euribor rates are based on the average interest rates at which a large panel of European Banks borrow funds from one another. There are different maturities, ranging from one week to one year.
The Euribor rates are considered to be the most important reference rates in the European money market. The interest rates do provide the basis for the price and interest rates of all kinds of financial poducts like interest rate swaps, interest rate futures, saving accounts and mortgages. That’s the exact reason why many professionals as well as individuals do monitor the development of the Euribor rates intensively.
In total, there are 5 different Euribor rates (until November 1st 2013, there were 15 Euribor rates).