Canadian Overnight Money Market Rate

What is ‘Canadian Overnight Money Market Rate’

A measure or estimate of the rate at which major dealers are able to arrange financing of securities inventory for one business day. It is compiled by the Bank of Canada at the end of the day through a survey of major participants in the overnight market.

Explaining ‘Canadian Overnight Money Market Rate’

The Canadian overnight money market rate comprises the weighted-average repo funding cost of major money market dealers. It is a less volatile measure of the collateralized overnight rate than other rates as it represents a greater volume of overnight transactions from more participants.

Further Reading

  • Lending rate stickiness and monetary transmission mechanism: the case of Canada and the United States – [PDF]
  • Monetary and banking policy transmission through interest rates: an empirical application to the USA, Canada, the UK and the Eurozone – [PDF]
  • The impact of monetary policy shocks on stock prices: Evidence from Canada and the United States – [PDF]
  • Measuring regional effects of monetary policy in Canada – [PDF]
  • The implementation of monetary policy in Canada – [PDF]
  • Uncollateralized overnight lending in Canada – [PDF]
  • Financial innovation in Canada: Causes and consequences – [PDF]
  • Monetary base endogeneity and the new procedures of the asset-based Canadian and American monetary systems – [PDF]
  • A black swan in the money market – [PDF]