What is LIBOR? It's the London Interbank Offered Rate and it's a daily reference rate based on the interest rates at which banks borrow unsecured funds from banks in the London wholesale money market.
LIBOR has been around for a while to guide interest rates on commercial paper, but most US consumers have been hearing about it in regards to adjustable rate and option arm mortgages.
As the economy becomes more and global LIBOR becomes increasingly important. It is a indicator of banks willingness to lend to each other: the higher the LIBOR, the greater risk that banks aren't loaning.
Many LIBOR rates exist including 1 month, 3 month, 6 month and 1 year.