Bank Of Canada's Central Bank Analysis

A central bank is the public authority that oversees all financial institutions and implements monetary policy. The Bank of Canada is Canada’s central bank. Monetary policy is how The Bank Of Canada controls inflation and the business cycle by monitoring and changing the amount of money being circulated in the economy and regulating both interest and exchange rates (Parkin, 2003).
The Bank of Canada plays a great role in chartered banks. One of the tools that the Bank of Canada uses to implement monetary policy that affects banks is its policy interest rate or its target for the overnight rate. The overnight rate is the rate at which chartered banks borrow and lend money overnight amongst themselves- this rate changes daily. The Bank of Canada