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.

• It’s not exactly clear to me what you mean by achieving the same goal. The middle of the band is unchanged, but the band is wider. – Brian Romanchuk Apr 3 at 19:52
• Achieving the same goal as in, when the Bank of Canada imposes the bank rate and deposit rate 0.25 above and below the target overnight rate, the goal is to create the given overnight loan rate, right? So what I'm wondering is would it achieve the same overnight loan rate if you made the bank rate and deposit rate 0.5% above and below, or does it have to be 0.25%? – RNdev Apr 6 at 16:16