Reference rate

A reference rate is a widely recognised and quoted interest rate - such as the Fed funds rate, the prime rate, or SONIA - by reference to which a rate of interest is calculated.

For example, in the rate ‘SONIA plus 50 basis points’, SONIA is the reference rate.

See also

• Adjustable-rate mortgage
• ARRC
• Base rate
• Benchmark
• €STR
• Fallback
• LIBOR
• Loan agreement
• OBFR
• Official Bank Rate
• SOFR
• SONIA
• Zero rate provision