Broker loan rate

(redirected from Call Money Rates)

Broker loan rate

Related: Call money rate.

Broker Loan Rate

The interest rate at which banks make loans to brokers in order to finance margin loans for their clients. Because the broker wishes to make a profit on his/her own margin loans, he/she offers margin loans at a premium to the broker loan rate. It is also called the call money rate.
References in periodicals archive ?
The central bank provided liquidity as overnight call money rates on borrowings by foreign banks were slightly higher than the BOJ's official target of around 0.5 percent in the morning.
The central bank has injected fresh liquidity into the money market as overnight call money rates on borrowing by foreign banks remained in the mid-0.5 to mid-0.6 percent levels, above the BOJ's official target of around 0.5 percent.
The BOJ supplied fresh liquidity into the money market as overnight call money rates on borrowing by foreign banks were at around 0.55 to 0.65 percent levels, above the BOJ's official target of around 0.5 percent.
The BOJ instead drained a total of 2.8 trillion yen from the money market in view of a temporary excess of funds as unsecured overnight call money rates applied to interbank borrowing slipped below the BOJ's official target of around 0.5 percent.
Overnight call money rates remained at around 0.6 percent for foreign banks and around 0.55 percent for Japanese regional banks, both above the BOJ's official target of around 0.5 percent, even after the BOJ injected 2 trillion yen into the market in the morning.
The operations were implemented as overnight call money rates for foreign bank borrowing came to 0.70 to 0.75 percent, well above the BOJ's official target of around 0.5 percent.
As the action failed to lower overnight call money rates for borrowing by foreign banks, the central bank injected an additional 800 billion yen into the market in the afternoon, expanding the range of funding targets to include regional financial institutions as well as foreign banks.
The additional move came as overnight call money rates on the borrowing of foreign banks remained at high levels compared with the central bank's official target of around 0.5 percent, even after the morning operation.
The weighted average of unsecured overnight call money rates, the key interest rate applied to banks borrowing from each other, ended the day at 0.469 percent, down 0.001 percentage point from Thursday and below the BOJ's official target of 0.5 percent.
The weighted average of unsecured overnight call money rates briefly touched the 0.850 percent, a level unseen since late March 1997, before retreating to 0.715 percent, still above the Bank of Japan's target of 0.500 percent.
The weighted average of unsecured overnight call money rates registered 0.358 percent on persistent speculation that the central bank will announce a decision to raise the target rate Wednesday when its Policy Board ends its two-day meeting, market traders said.
The Bank of Japan on Monday pumped 2.1 trillion yen into the money market via same-day fund supplying operations to stem a rise in overnight call money rates ahead of its two-day policy-setting board meeting from Tuesday.