Bank of Canada Overnight Lending Rate
When the Economy is expanfing to the point of inflation, The Bank of Canada can increase interest rates, making it more expensice for consuners to borrow. This tends to reduce overall spending and slows growth to a more manageable rate. The opposite holds true when the economy is weakening, in this case the Bank of Canasa will reduce rates in an attempt to encourage and boost consumer spending.
The primary mechanism the Bank of Canada has to manage interest rates is through the Overnight Lending Rate. This is the interest rate the retail banks earn on the funds they hold on overnight deposits with the Bank of Canada
courtesy of Trilogy Mortgage
Data supplied by CREB®’s MLS ® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.