LIBOR-SONIA index - consultation response

22 April 2020

We've responded to the Bank of England consultation on its proposals to produce a daily index to support the use of SONIA by simplifying the calcuation of interest rates.

Ahead of the switch from LIBOR to SONIA, the Bank of England issued a consultation seeking seeking views on its intention to publish a daily SONIA Compounded Index.

The consulation also sought views on the usefulness of the Bank publishing a set of compounded SONIA Period Averages, which would give users easy access to SONIA interest rates compounded over a set time period.

We have previously called for the Bank to publish this index to support smaller organisations and ensure a more level playing field in the transition from LIBOR.

In this response, we:

  • State our support for the publication of the SONIA Compounded Index.

  • Support the Bank’s design of the compounded index.

  • Ask the Bank to ensure it has consulted sufficiently with smaller organisations to understand if there are benefits in producing SONIA Period Averages.

Who to speak to

Adam Gravely, Finance Policy Officer