Daily Sterling Overnight Index Average (SONIA) Rate: 75th percentile
IUDZLS8 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.22
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 75th percentile provides a key benchmark for short-term interest rates in the financial markets. This metric helps economists and financial professionals understand the cost of borrowing and lending in the overnight interbank market.
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 represents the 75th percentile of daily SONIA rates, indicating the upper range of short-term lending costs among financial institutions. Economists use this metric to assess market liquidity, interbank lending conditions, and potential monetary policy implications.
Methodology
The rate is calculated by aggregating overnight lending transactions and determining the 75th percentile value across a specified time period.
Historical Context
Central banks and financial analysts use this data to evaluate market dynamics, assess lending conditions, and inform monetary policy decisions.
Key Facts
- Represents the 75th percentile of daily overnight lending rates
- Provides insight into short-term financial market conditions
- Used by economists and policymakers to assess market liquidity
FAQs
Q: What does the 75th percentile of SONIA rate indicate?
A: The 75th percentile represents the upper range of overnight lending rates, showing the cost of borrowing for a significant portion of financial transactions.
Q: How is the SONIA rate different from other interest rate benchmarks?
A: SONIA focuses specifically on sterling overnight interbank lending, providing a more localized and immediate view of short-term borrowing costs compared to broader indices.
Q: How frequently is the SONIA rate updated?
A: The SONIA rate is typically calculated and updated daily, reflecting the most recent overnight lending transactions in the financial market.
Q: Why do policymakers care about the SONIA rate?
A: The rate provides real-time insights into market liquidity, lending conditions, and potential economic stress, which are crucial for monetary policy decisions.
Q: What are the limitations of the SONIA rate?
A: The rate is specific to sterling markets and may not fully represent global lending conditions, requiring complementary analysis from other financial indicators.
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Citation
U.S. Federal Reserve, Daily Sterling Overnight Index Average (SONIA) Rate: 75th percentile [IUDZLS8], retrieved from FRED.
Last Checked: 8/1/2025