AUSTRALIAN FINANCIAL MARKETS ASSOCIATION (AFMA) BANKBILL REFERENCE RATE (BBSW)
The bank bill interest rate is the wholesale interbank rate within Australia and is published by the Australian Financial Markets Association (AFMA). It is the borrowing rate among the country's top market makers, and is widely used as the benchmark interest rate for financial instruments.The bank bill interest rate is Australia's equivalent of LIBOR or SIBOR and is used as a reference rate in much the same way. For instance, a variable floating rate may quote 100 basis points over LIBOR, whereas in Australia they may use 100 basis points over the BBSW. Although frequently abbreviated to "bank bill rate", the actual term is the "bank bill swap interest rate", hence the abbreviation BBSW.