Based on variation of the discount or Lombard rates
, the Central Bank may influence credit demand by banks and by the private sector.
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.
The Austrian national bank lowers the discount and Lombard rates
Following the Bundesbank's rate reduction, in mid-May, the Austrian discount and the Lombard rates
were lowered to 4 1/2 and 5 1/2 per cent, respectively.
Between February and July 1993, the discount and Lombard rates
have been reduced in several steps to 6 3/4 per cent and 8 1/4 per cent respectively (cf.
Moreover, it increased discount and lombard rates
on several occasions, introduced a flexible lombard rate
 at 1 percentage point above the call-money rate in the Spring of 1989, and raised this mark-up to 2 percentage points in December 1989.
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.
New legislation adopted in February 1992 makes the Bank of Italy fully independent of the government in setting the discount and Lombard rates
In addition, on August 24 the Bundesbank reduced both its discount and Lombard rates
50 basis points, to 3.
With monetary policy centred on the linkage of the schilling to the Deutschemark, both the discount and the Lombard rates
were raised in line with those in Germany in December.