Reference rate

From ACT Wiki
Revision as of 12:39, 16 February 2022 by imported>Doug Williamson (Update for LIBOR transition.)
Jump to navigationJump to search

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