I read the following quote about the Bank of Canada's "operating band" for inducing target overnight loan rates:
The Bank of Canada has a system of an "operating band" for overnight trading.” This band is one-half of a percentage point wide and at the center of the bank is the target for the overnight rate. For example, if the operating band is from 2.25 to 2.75%, the target for the overnight rate is 2.5%. The top of that band, 2.75%, is the bank rate—the interest rate that the bank charges on one-day loans to LVTS participants. The bottom of the band, 2.25%, is the deposit rate—the interest rate that the bank pays on any surplus left on deposit overnight at the bank.
What I Want To Know: Would making the bank rate higher than 2.75 and the deposit rate lower than 2.25 achieve the same goal? For instance, if you made the operating band 2.0 - 3.0 instead of 2.25 - 2.75.