The 18-year-old, an England U19 international, comes straight into the reckoning for tomorrow's trip to Bloomfield Road to take on Blackpool having trained with the Blues squad today.
Bermondsey-born Ibe was snapped up by the Liverpool Academy from Wycombe Wanderers in December 2011 and swiftly rose through the Reds' youth ranks.
The Londoner made his Barclays Premier League debut for Liverpool against Queens Park Rangers at Anfield on the final day of the 2012/13 campaign and has made a further two senior appearances for his parent club this season.
Having represented England at U18 level, he made his U19 debut for the Three Lions last September during a 6-1 victory over Estonia.
Ibe will wear first-team squad number 8. Stay tuned for the thoughts of Blues boss Lee Clark on the talented teenager's arrival.