What is London Interbank Bid Rate?

The London Interbank Bid Rate is a bid rate; the rate bid by banks on Eurocurrency deposits. It is the "other end" of the LIBOR. Whilst the British Bankers' Association set LIBOR rates, there is no correspondent official LIBID fixing.

Conventional wisdom used to assert that a LIBID rate could be calculated by subtracting a fixed amount from the prevailing BBA LIBOR rate, however this is no longer the case as bid–offer spreads have tightened in recent years. Additionally, it cannot be the case that the LIBOR/LIBID spread is always ⅛th of 1% for all maturities and all currencies all the time.