An Overview of the Overnight Rate Increase in 2022 And Its Difference With the Prime Rate

What is the key policy rate (Overnight Rate)?

Average interest rate for one-day loans between financial institutions: the interest set by the Bank of Canada in order for commercial banks to charge when lending each other money overnight to settle daily balances. The Bank of Canada's overnight rate target had an increase of 4.00% in 2022 as follows:

What is the Prime rate?

The interest set by major commercial financial institutions that serves as the basis for the interest rate that lenders will charge for certain loans.

This short video explains what does this mean for you?

https://youtu.be/JGRB1l4MDJo