When Canadian banks borrow from one another,they must pay the

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The overnight rate is the interest rate at which banks in Canada lend and borrow money from each other overnight. This is set by the Bank of Canada, and is the primary tool used to implement monetary policy in Canada. Therefore, when Canadian banks borrow from one another, they would pay the overnight rate. The bank rate is the interest rate that the Bank of Canada charges commercial banks for short-term loans, the prime rate is the interest rate that commercial banks charge their most creditworthy customers, and the Interbank Offer Rate is a benchmark interest rate used in international lending markets.

When Canadian Banks Borrow from One Another,they Must Pay the