depo rate

depo rate definition - finance
An interest rate that is paid on deposits in the interbank market. It is a bid rate, or an interest rate that a bank will pay on eurocurrency deposits. It is similar to the London Interbank Offered rate (LIBOR), which is the rate that international banks typically charge each other for loaning Eurodollars overnight in the London market. It is a frequently quoted rate that is used to price a variety of financial issues and short-term debt. Often, interest rates are quoted at an amount above LIBOR. It also may be called a London Interbank Bid rate (LIBID).

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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