AONIA stands for Australian Overnight Index Average. It is the daily reference rate for unsecured overnight
loans between banks in Australia. AONIA is administered by the Reserve Bank of Australia (RBA).
AONIA is used as a benchmark rate for a variety of financial products, including
interest rate swaps,
floating-rate loans, and securitisations. It is also used as a reference rate for the calculation of the Australian Consumer Price Index (CPI).
AONIA is calculated by the RBA based on a weighted average of the interest rates on unsecured overnight loans between banks. The RBA publishes AONIA each day on its website.
It is a risk-free rate, which means that it is not subject to credit risk. This makes it an attractive benchmark rate for financial products that are designed to be low-risk.
AONIA is an important part of the Australian financial system. It is used to price a wide range of financial products and it is also used as a reference rate for the calculation of the CPI. AONIA is a reliable and transparent benchmark rate that helps to promote efficiency in the Australian financial markets.