An interest rate that banks around the world use as a benchmark for short-term borrowing will be phased out and eventually replaced by June 2023, the Federal Reserve announced Monday.The Fed was joined by regulators in the U.K. in announcing the plans for the London Interbank Offered Rate, commonly referred to as Libor.According to the announcement, banks should stop writing contracts using LIBOR by the end of 2021, after which the rate no longer will be published.Contracts using LIBOR should wrap up by June 30, 2023, the directive said.”Today’s plan ensures that the transition away from LIBOR will be …
