At the peak of the pandemic-induced market meltdown, guesswork played a vital rolein setting international borrowing costs.

Transactional data used to calculate sterling LIBOR all butvanished as markets became volatile in March, reinforcing the casefor abandoning the benchmark, Bank of England Governor AndrewBailey said in a speech on Monday.

To set LIBOR, which underpins hundreds of trillions of dollarsin assets around the world, banks submit market data, or—when thesenumbers are lacking—use their own estimates to inform submissions.That process has prompted questions about the benchmark's accuracyand helped fuel a years-long push to replace it.

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