Overnight Rate
/ˈoʊvərˌnaɪt reɪt/
Definitions
- (n.) The interest rate charged for borrowing or lending funds overnight between financial institutions, often used as a benchmark in monetary policy.
The central bank adjusted the overnight rate to influence inflation and liquidity in the economy.
Forms
- overnight rate
- overnight rates
Related terms
See also
Commentary
In legal and financial documents, the overnight rate is typically referenced in regulations governing lending institutions and monetary policy frameworks, necessitating precise definition for contract clarity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.