75 percent, the rediscount rate at 5 percent, the
Lombard rate at 6.
The central bank also said it will cut the
Lombard rate to 0.
For the case of the Bundesbank, our estimates suggest that the
Lombard rate (a rate analogous to the discount rate in the United States) is a marginally better indicator of policy than the call rate, a short-term rate that has been used often as a policy indicator in previous studies.
On November 2, 1990, the Bundesbank raised the
lombard rate from 8 to 8.
The loans will have an 18-month grace period for payment of interest; and the interest rate will be 2% over the German
Lombard rate.
75 percent, the
Lombard rate at 6 percent and the deposit rate at 3 percent.
The Bundesbank accepted a drop in the rate at which it routinely supplies liquidity to the banking system and announced a further reduction in its
Lombard rate of 1/2 percentage point to 7.
The central bank of Croatia has announced that it has lowered its
Lombard rate.
The German Bundesbank reduced its official discount rate and its
Lombard rate each 100 basis points in a series of steps undertaken during the February-April period to stimulate the weakening German economy.
Although the hike in the discount rate did not spur significant gains in money market rates and the Bundesbank denied that a
Lombard rate increase would necessarily follow, market participants believed that the move paved the way for a subsequent rise in short-term mark rates.
75 per cent and maintained the
Lombard rate at six per cent.
75 percent, the
Lombard rate at 6 percent, and the deposit rate at 3 percent, it said.
