Research Discussion Paper – RDP 2026-03 Designing an Efficient Reference Rate: Lessons from SOFIA
December 2025
Contents
- Introduction
- Institutional Background
- Data
- Estimating Noise in Beta SOFIA
- Conclusions
- Appendix A: Supplementary Information
- Appendix B: Why SOFIA Warrants a Higher Expert Judgement Threshold than the BBSW or the Cash Rate
- References
We thank Claude Lopez, Claudia Seibold, Tom Cusbert, and David Jacobs for their helpful comments and insights. We are also grateful to our external reviewer, Peter O'Neill, for valuable feedback that improved the paper, and to Laurence Bristow for his extensive internal work on SOFIA at the RBA, upon which this work builds. We thank the ASX for the provision of data and for insightful discussions, particularly Allan McGregor. The views expressed in this paper are those of the authors and should not be attributed to the Reserve Bank of Australia. Any errors are the sole responsibility of the authors.