Overnight Rate
Definition
- The interest rate that banks use when borrowing and lending money from each other on the overnight market. The overnight rate is commonly targeted by a country's central bank (in Canada that would be the Bank of Canada) in order to shape monetary policy.
Synonyms
internal lending, inside rate, bank lending rate
Related Terms and Acronyms
- Bank Rate — Definition,
- Closely related to the overnight rate, the bank rate is the interest rate the Bank of Canada charges to banks and other major financial institutions for one-day loans.
- Large Value Transfer System (LVTS) — Acronym,
- System being created by the Canadian Payments Association that will settle large value payments, possibly $50,000 and over, at the central bank on a same-day basis.
- Macroeconomics — Definition,
- A study of the economy as a whole, particularly the interaction of its various components.
- Mortgage Rate — Definition, Very Important,
- The interest rate on a mortgage loan.
➥ You can compare mortgage rates using this website by clicking 'Rates' above. - Prime Lending Rate (PLR) — Acronym, Very Important,
- The rate of interest charged on loans by chartered banks to their most creditworthy customers.
➥ Bank of Canada's prime (best) lending rate. - Prime Rate — Definition,
- The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
