Brace yourselves, interest rates are coming!

The London interbank offered rate (Libor) is a rate benchmark for $200 trillion of dollar-denominated interest rate swaps, loans and other financial products. On May, 4th libor for banks to borrow three-month dollars had climbed to 2.36906 percent, which was the highest since November 2008 before retreating in recent weeks to 2.31919 percent on Tuesday. Next Wednesday the U.S. central bank will likely raise key overnight borrowing costs to roughly match its target for inflation, meaning that for the first time in almost a decade the cost of borrowing dollars will no longer be essentially free.

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