NEW YORK (Reuters) - What U.S. banks charge each other to borrow reserves overnight jumped on Monday, prompted by a jump in money market rates amid scarcity in cash available for lending, according to data from the New York Federal Reserve released on Tuesday.

The effective, or average, interest rate on what banks charge each other to borrow reserves overnight in the federal funds market rose to 2.25% on Monday, up from 2.14% last Friday.

This interbank borrowing cost is what the Federal Reserve monitors to ensure it is meeting its interest rate goal.