Daily Sterling Overnight Index Average (SONIA) Rate: 25th percentile
IUDZLS7 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.21
Year-over-Year Change
0.00%
Date Range
10/5/2021 - 8/4/2025
Summary
The Daily Sterling Overnight Index Average (SONIA) Rate at the 25th percentile represents a key benchmark for short-term lending rates in the financial markets. This metric provides insights into the lower range of overnight borrowing costs, helping economists and financial professionals assess market liquidity and lending conditions.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This trend captures the 25th percentile of daily SONIA rates, which indicates the lower bound of overnight interbank lending rates. Economists use this metric to understand the lower end of short-term borrowing costs and potential market stress or liquidity constraints.
Methodology
The rate is calculated by aggregating actual overnight sterling transactions and determining the 25th percentile value across a representative set of financial transactions.
Historical Context
Central banks and financial analysts use this indicator to monitor market conditions, assess potential economic pressures, and inform monetary policy decisions.
Key Facts
- Represents the lower quartile of overnight lending rates
- Provides insights into short-term financial market conditions
- Used by economists to assess potential market stress
FAQs
Q: What does the 25th percentile of SONIA rate indicate?
A: It represents the lower bound of overnight lending rates, showing the cheapest 25% of borrowing transactions in the market.
Q: How often is this rate updated?
A: The SONIA rate is typically calculated and updated daily, reflecting real-time changes in financial market conditions.
Q: Why is the 25th percentile important?
A: It helps identify the most favorable lending rates and potential market inefficiencies or stress points.
Q: How do policymakers use this data?
A: Central banks analyze this rate to understand market liquidity, potential economic pressures, and inform monetary policy decisions.
Q: What are the limitations of this metric?
A: The 25th percentile provides only a partial view of market conditions and should be analyzed alongside other financial indicators.
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Citation
U.S. Federal Reserve, Daily Sterling Overnight Index Average (SONIA) Rate: 25th percentile [IUDZLS7], retrieved from FRED.
Last Checked: 8/1/2025