What is Interbank Rate?

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The **Interbank Rate** is the interest rate charged on short-term loans, typically overnight, between banks in the interbank money market, serving as a foundational benchmark for global financial transactions and monetary policy transmission. This rate is a critical indicator of the overall liquidity and health of the banking system, directly influencing lending rates for consumers and businesses.

Interbank Rate

What is Interbank Rate?

What is the primary function of the Interbank Rate and how does it impact the global financial system?

How do central banks manipulate the Interbank Rate to achieve monetary policy objectives?

What is the difference between the Interbank Rate and the consumer Prime Rate?

How does the Interbank Rate influence pricing and trading in the Foreign Exchange (FX) market?

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