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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.


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The central bank also said it will cut the Lombard rate to 0.
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.
 
 
 
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