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United Kingdom Sterling Overnight Index Average

United Kingdom Sterling Overnight Index Average was at 0.05 percent on Tuesday December 14. Overnight Interbank Average Rate in the United Kingdom averaged 2.64 percent from 1997 until 2021, reaching an all time high of 8.56 percent in October of 1998 and a record low of 0.04 percent in December of 2020. SONIA (Sterling Overnight Index Average) is based on actual transactions and reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions and other institutional investors. Financial businesses and institutions use SONIA in a variety of ways. For example, to calculate the interest paid on swap transactions and sterling floating rate notes . SONIA is used to value around £30 trillion of assets each year. SONIA is the Working Group on Sterling Risk Free Reference Rates’ preferred benchmark for the transition to sterling risk-free rates from Libor. This page includes a chart with historical data for the United Kingdom Overnight Interbank Average Rate.