Uncollateralized Overnight Call Rate

無担保コールレート ／ uncollateralized-call-rate　—　Institutions

The interest rate at which banks lend and borrow from each other overnight without collateral. Japan's policy interest rate.

What the central bank raises and lowers is this interbank rate, not the interest rates on deposits and loans themselves. From there, it is transmitted to deposits, loans, and prices through three channels.