In Canada,the overnight rate bank rate is stipulated by ________.

Question

Quizplus · Accepted Answer

The overnight rate bank rate in Canada is set by the Bank of Canada. This rate is the interest rate at which major financial institutions borrow and lend one-day (or overnight) funds among themselves. The Bank of Canada uses this rate as a tool to guide monetary policy and influence the economy. The Ministry of Finance does not directly set the overnight rate bank rate, but it does work closely with the Bank of Canada in conducting monetary policy. The domestic capital market and domestic money market play important roles in shaping interest rates, but they do not directly determine the overnight rate bank rate.

In Canada,the Overnight Rate Bank Rate Is Stipulated by ________