Lombard rate

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 ?
The central bank also said it will cut the Lombard rate to 0.
This put the so-called Lombard rate, which the CB charges to banks borrowing overnight with government securities as collateral, up to 8.
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 Austrian national bank lowers the discount rate by 1/2 percentage point to 4 per cent and the Lombard rate by 1/4 percentage point to 5.
Moreover, tight liquidity conditions in the money market consistently pushed the interbank overnight rate above the Lombard rate, which normally acts as the ceiling for interbank credit.
Subsequently and until mid-1992, policy-controlled interest rates were raised 12 times, culminating in July with a discount rate of 8 3/4 per cent and an unchanged high Lombard rate of 9 3/4 per cent.
As a result, the flexible lombard rate fell by 1 1/2 percentage points to 9.
The bank also said that it has kept its lombard rate flat at 2.
Faced with accelerating monetary growth and a worsening inflation climate, the discount rate was raised from 7 1/2 to 8 per cent and the Lombard rate from 9 1/4 to 9 3/4 per cent in December 1991.
75 percent, the rediscount rate at 5 percent, the Lombard rate at 6.
On 22 December, after a rise in the Lombard rate in November, the discount rate was raised by 1/2 percentage point to 12 per cent.