06-02-2025
BOE's Liquidity Drain Is Finally Lifting Key SONIA Rate Again
The UK's most important market interest rate is rising for the first time in almost a year, reflecting the Bank of England's ongoing efforts to drain excess liquidity from the financial system.
The Sterling Overnight Index Average, or SONIA, rose for five sessions through Tuesday — the first consecutive gains since April, according to the latest data. That broke an abnormal paralysis where it was stuck exactly five basis points below the BOE's key rate for months.
