Lombard rate

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Lombard rate

Applies mainly to international equities. Interest rate the German Bundesbank uses as an upper limit to the day-to-day money rate, since no bank will pay higher rates in the money market than it has to pay for very short-term recourse to Lombard credit.

Lombard Rate

The interest rate the Deutsche Bundesbank charges other banks for collateralized loan obligations. Previously, the Lombard rate could be raised or lowered in keeping with Germany's monetary policy. However, since the euro came into being, Germany no longer controls its own monetary policy.

Lombard rate

The rate of interest at which the Bundesbank, Germany's central bank, lends funds to the country's commercial banks. The Lombard rate is an important indicator of Germany's monetary policy.
References in periodicals archive ?
Based on variation of the discount or Lombard rates, the Central Bank may influence credit demand by banks and by the private sector.
Lombard rates have varied from 25 to 200 basis points above the central bank's target policy rate or related money market rates.
The central bank said the refinancing rate and Lombard rates for all maturities were being raised from 50 per cent, placing them at their highest since February 1996.
Until mid-August 1991, the Bundesbank left the discount and lombard rates unchanged, while the repo rate steadily edged up toward the lombard rate of 9 percent.
On April 18, the Bundesbank announced that it would cut its discount and Lombard rates, effectively lowering the range within which German money market rates fluctuate.
In addition, on August 24 the Bundesbank reduced both its discount and Lombard rates 50 basis points, to 3.
When the council did lower the discount and Lombard rates 50 basis points to 6.
Indeed, on July 1 the Bundesbank announced a reduction in its official discount and Lombard rates of 50 and 25 basis points to 6.
As wage negotiations in Germany became more tense, the Bundesbank moved to increase interest rates both sooner and by a larger amount than the market had expected, announcing 1/2 percentage point rises for both its discount and Lombard rates on December 19.
On October 5, the Bundesbank announced an increase of a full 1 percentage point in both its discount and Lombard rates, surprising the market with the magnitude of the increase.
The announcement on April 13 that the Swiss National Bank would increase its discount and Lombard rates drew market attention once again to the possibility that interest rates abroad might need to be raised.
On the last day of January, the Bundesbank had increased its official discount and Lombard rates in a move whose timing surprised many in the market.