Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Does the Bank of Canada set the “prime rate”?

April 26, 2017Bank prime rate

0

10 Posted

Does the Bank of Canada set the “prime rate”?

1 Answer

0

10 Posted

No. Financial institutions set their own prime rates based on the cost of short-term funds, and on competitive pressures among them. The Bank influences the cost of short-term funds by setting the target for the overnight rate.