Daily Sterling Overnight Index Average (SONIA) Rate Total Nominal Value
IUDZLT2 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
52,480.00
Year-over-Year Change
11.01%
Date Range
10/5/2021 - 8/4/2025
Summary
The Daily Sterling Overnight Index Average (SONIA) Rate Total Nominal Value tracks the aggregate value of short-term lending transactions in British pounds sterling. This metric provides critical insights into interbank lending rates and overall financial market liquidity.
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
SONIA represents the effective overnight interest rate for unsecured transactions between financial institutions in the United Kingdom. Economists and financial analysts use this indicator to assess short-term borrowing costs and market sentiment.
Methodology
The rate is calculated by the Bank of England using transaction-level data from eligible sterling-denominated deposit transactions.
Historical Context
Central banks and financial institutions use SONIA as a key benchmark for pricing financial derivatives and evaluating monetary policy effectiveness.
Key Facts
- SONIA is a critical benchmark for sterling-denominated financial instruments
- The rate reflects actual transactions rather than quoted rates
- It serves as a key indicator of financial market liquidity and borrowing conditions
FAQs
Q: What does SONIA measure?
A: SONIA measures the average interest rate for unsecured overnight transactions between banks in the UK financial market.
Q: How is SONIA different from other interest rate benchmarks?
A: Unlike some benchmarks, SONIA is based on actual transaction data, providing a more accurate representation of market conditions.
Q: Who calculates the SONIA rate?
A: The Bank of England calculates SONIA using transaction-level data from eligible financial institutions.
Q: Why is SONIA important for financial markets?
A: SONIA serves as a key reference rate for pricing financial derivatives and assessing short-term borrowing costs.
Q: How frequently is the SONIA rate updated?
A: The SONIA rate is calculated and published daily, reflecting the most recent overnight lending transactions.
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Related Trends
Daily Sterling Overnight Index Average (SONIA) Rate: 75th percentile
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Daily Sterling Overnight Index Average (SONIA) Rate: 90th percentile
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Daily Sterling Overnight Index Average (SONIA) Rate: 25th percentile
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Daily Sterling Overnight Index Average (SONIA) Rate
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SONIA Compounded Index
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Daily Sterling Overnight Index Average (SONIA) Rate: 10th percentile
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Citation
U.S. Federal Reserve, Daily Sterling Overnight Index Average (SONIA) Rate Total Nominal Value [IUDZLT2], retrieved from FRED.
Last Checked: 8/1/2025