Bank Rate
The rate at which central banks lend funds to national banks. Investopedia Says:
A central bank adjusts the supply of currency within national borders by adjusting the bank rate. When the central bank reduces the bank rate, it increases the attractiveness for commercial banks to borrow, thus increasing the money supply. When the central bank increases the bank rate, it decreases the attractiveness for commercial banks to borrow, consequently decreasing the money supply. Related Terms:
Central Bank
Economics
Macroeconomics
Monetary Policy
Money Supply
Open Market Operations
Reserve Requirement |