The Bank carries out financial policy by influencing short-term rates of interest. It will this by increasing and lowering the prospective for the rate that is overnight.
The rate that is overnight the attention rate from which major banking institutions borrow and provide one-day (or "overnight") funds among by themselves; the financial institution sets a target degree for that price. This target when it comes to over night price is also known as the financial institution's policy rate of interest.
Alterations in the goal when it comes to over night price impact other rates of interest, like those for customer loans and mortgages. They could also impact the trade price for the Canadian dollar.
In November 2000, the lender introduced a method of eight fixed times every year upon which it announces whether or otherwise not it's going to replace the policy rate of interest.
To learn more in regards to the target for the rate that is overnight make reference to: Backgrounder - Target for the Overnight Rate
Monetary Policy Analysis and Reference Material
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Exchange Prices Research and Reference Material
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