What is the difference between the bank rate and the prime rate? The prime rate is the rate at which banks lend each other money, but what is the bank rate?
Add a comment
|
1 Answer
The prime rate is actually the rate at which banks lend to consumers/businesses with the highest credit ratings. The bank rate (more commonly known as the overnight rate) is the interest rate at which banks can borrow funds from the Bank of Canada or from each other.
answered Jan 2, 2014 at 22:37
NL - Apologize to MonicaNL - Apologize to Monica
32.4k19 gold badges82 silver badges143 bronze badges
-
Thanks. So bank rate is same as repo rate?economictimes.indiatimes.com/definition/repo-rate Jan 3, 2014 at 16:49
-
1@Kaushik, yes. I tried to use the terminology common to Canada because of the tag. Jan 3, 2014 at 17:25