Overnight Rate

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Dictionary Says

Definition of 'Overnight Rate'

The interest rate at which a depository institution lends immediately available funds (balances within the central bank) to another depository institution overnight.
Investopedia Says

Investopedia explains 'Overnight Rate'

In countries where central banks exist, this provides for an efficient method whereby banks can access short-term financing from central bank depositories. As the overnight rate is influenced by the central bank, it is a good predictor for the movement of short-term interest rates.

In the U.S., this is referred to as the Federal Funds Rate.
Search results for

'Overnight Rate'

  • Discount Rate Cut Half A Point - Now What?

    http://stocks.investopedia.com/stock-analysis/2007/Discount_Rate_Cut_Half_A_Point_-_Now_What.aspx
    ... What The Fed Should Do The Fed can, and should, lower the Fed Funds rate - the rate
    at which banks borrow from each other, known as the overnight rate. ...

  • The Federal Reserve: The FOMC Rate Meeting | Investopedia

    http://www.investopedia.com/university/thefed/fed4.asp
    ... reduces reserves at the banks of purchasers, which makes it more likely that the
    bank will engage in overnight borrowing, and increase the federal funds rate. ...

  • What is an overnight position in the forex market?

    http://www.investopedia.com/ask/answers/forex/overnight-position.asp
    ... If the Canadian interest rate is at 3.00% and the US interest rate is at 2.50 ... at
    5:03pm EST, this will still be considered to be held overnight because it was ...

  • Volatility's Impact On Market Returns

    http://www.investopedia.com/articles/financial-theory/08/volatility.asp
    ... borrowing by banks. When they change the overnight rate, it can cause stock
    markets to react, sometimes violently. Changes in inflation ...

  • Golden Opportunity

    http://stocks.investopedia.com/stock-analysis/2008/Golden_Opportunity.aspx
    ... Moreover, many are expecting the Fed to cut the overnight rate again on
    Tuesday, perhaps as low as 1.75%, from the present 2.50%. ...

  • Interest Rates And Your Bond Investments

    http://www.investopedia.com/articles/03/122203.asp
    ... The Fed has three policy tools, but its biggest hammer is the federal funds
    rate, which is only a one-day, overnight rate. Third ...

  • How Interest Rate Cuts Affect Consumers

    http://www.investopedia.com/articles/economics/08/interest-rate-affecting-consumers.asp
    ... target rate. The target rate is a guideline for the actual rate that banks
    charge each other on overnight reserve loans. Rates on ...

  • How The US Government Formulates Monetary Policy

    http://www.investopedia.com/articles/04/050504.asp
    ... next. So, the federal fund rate is essentially the interest rate that one
    bank charges another for borrowing money overnight. The ...

  • What is the difference between LIBOR, LIBID and LIMEAN?

    http://www.investopedia.com/ask/answers/09/libor-libid-limean.asp
    ... banks' interbank bid/ask rates for institutional loans with maturities that range
    between overnight and one year. The London Interbank Mean Rate (LIMEAN) is ...

  • Understanding Forex Rollover Credits And Debits

    http://www.investopedia.com/articles/forex/08/forex-rollover-credit-debit.asp
    ... received by the trader, for holding the EUR/USD pair overnight, will be ... and whether
    that country's currency has a higher or lower interest rate attached to it. ...

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