Euro Overnight Index Average - EONIA

AAA

DEFINITION of 'Euro Overnight Index Average - EONIA'

The weighted average of overnight Euro Interbank Offer Rates for inter-bank loans.

INVESTOPEDIA EXPLAINS 'Euro Overnight Index Average - EONIA'

EONIA is the standard interest rate for Euro currency deposits. The European Central Bank is responsible for calculating the EONIA every day.

RELATED TERMS
  1. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate ...
  2. Overnight Rate

    The interest rate at which a depository institution lends immediately ...
  3. Money Market

    A segment of the financial market in which financial instruments ...
  4. Panel Bank

    The name given to the group of banks contributing to the Euro ...
  5. Euro LIBOR

    London Interbank Offer Rate denominated in euros. This is the ...
  6. Benchmark

    A standard against which the performance of a security, mutual ...
RELATED FAQS
  1. If my brother-in-law, who works at a pharmaceutical company, tells me about his research ...

    Tier 1 capital measures a bank's financial strength. It is composed of the company's common stock and retained earnings. ... Read Full Answer >>
  2. What are some examples of operations management in healthcare?

    Open market operations are a mechanism by which monetary policy is transmitted. Monetary policy aims to find the best balance ... Read Full Answer >>
  3. How is the Macaulay duration related to fixed income markets?

    Monetary policy influences the Fisher effect because it determines the nominal interest rate. The Fisher effect is an economic ... Read Full Answer >>
  4. How can central banks use open market operations to manipulate short-term interest ...

    A central bank uses open market operations to manipulate short-term interest rates by increasing or decreasing the money ... Read Full Answer >>
  5. What's the difference between the prime rate and the repo rate?

    The prime rate is used as the index for rates offered in consumer lending and loan products. When government central banks ... Read Full Answer >>
  6. How does the law of supply and demand affect monetary policy in the United States?

    The law of supply and demand affects monetary policy in the United States through the adjustment of interest rates. Interest ... Read Full Answer >>
Related Articles
  1. Economics

    What Is Deflation And How Do Central Banks Fight It?

    The measures taken by central banks seem to be winning the battle against deflation, but it is too early to tell if they have won the war.
  2. Economics

    Can Bitcoin Kill Central Banks?

    Bitcoin is a peer-to-peer unofficial currency that operates without government or central bank oversight. Can Bitcoin kill off the need for central banks?
  3. Mutual Funds & ETFs

    Top Foreign Debt ETFs & Funds for Diversification

    Foreign fixed income options for investors seeking capital preservation and diversification
  4. Economics

    A Risky Maneuver To Jumpstart Japan's Economy

    Japan's government and the Bank of Japan are buying large amounts of government bonds in an effort to spark economic activity, but there are great risks.
  5. Bonds & Fixed Income

    Understanding Negative Rates Of Europe's Central Banks

    We are currently seeing negative central bank deposit rates and government and corporate bonds with negative yields, but there are investors buying into these securities. Why?
  6. Economics

    Benefits From A Tango Of China-US Trade and Debt

    China has been accumulating US debt for many decades. Here's why it continues to do so, and the risks and benefits of this for both the US and China.
  7. Trading Strategies

    Consider The Season On Trading Day

    Calendar and clock bias, better known as seasonality, is a frequently misunderstood concept that exerts a huge influence on the ticker tape.
  8. Economics

    Sanctions & Falling Oil Prices Hit Ruble Hard

    Russia, through its aggressive actions, has brought upon itself sanctions which, coupled with falling oil prices, have adversely impacted its economy.
  9. Investing

    The Increasing Importance Of The Reserve Bank of India

    With the Indian economy accounting for a great share of the global economy, the RBI is poised to become one of the world’s leading central banks.
  10. Bonds & Fixed Income

    End of Fed's Bond-Buying Program: 7 Things To Know

    This article helps investors understand the economic and financial effects that result when a central bank (like the Fed) ends its bond purchase program.

You May Also Like

Hot Definitions
  1. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  2. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  3. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  6. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
Trading Center