The interest rate at which major banks lend to one another on the overnight market, typically utilized for short-term funding. Indexes of the average overnight rate, such as SONIA and EONIA, provide key reference rates in financial markets.
SONIA, an acronym for Sterling Overnight Index Average, is a reference rate computed as a weighted average of sterling overnight funding rates in the interbank market.
Finance professionals often use the Sterling Overnight Index Average (SONIA) as the benchmark interest rate for loans and financial contracts denominated in pounds sterling. Discover its definition, application, and influence on global finance.
A trade association for UK brokers operating in the money markets, the WMBA is responsible for providing key indices like SONIA and EURONIA for overnight lending in sterling and euro markets respectively.
