DCHP-2

bank rate DCHP-2 (November 2016)

• n. — Finance

  the interest rate on one-day loans to financial institutions as set by the Bank of Canada.

  Bank rate has been preserved from British English. OED-3 defines the term as "the rate per cent. per annum fixed from time to time by the Bank of England, at which the company is prepared to discount bills of exchange having not more than 95 days to run" (see OED-3, s.v. "bank rate" [a]), and the Bank of England website gives the same definition for their Bank Rate as the Canadian meaning (see Bank of England reference).
  See also COD-2, s.v. "bank rate", which is marked "esp. Cdn".

  • 1864  "The Times" city article says an idea is prevalent that a reduction of the Bank rate to five per cent may not be far distant. 
  • 1895  Bank rate 2 percent.
  • 1978  In Canada most money market rates will probably move by 50 to 75 basis points too, although the bank rate is likely to be a lagger. 
  • 1981  The Bank of Canada announced Wednesday the bank rate would no longer be indexed to the interest rate for 90 day treasury bills 
  • 1999  Levesque said the Bank of Canada raised the bank rate because it was concerned the Canadian dollar would take a hit if it did not follow the U.S.