Definitions
There is 1 meaning of the phrase
Lombard Rate.
Lombard Rate - as a noun
An interest rate charged by a central bank for very short term loans to other banks against an approved collateral.
Example: "Lending is via central banks, in particular the securities 'eligible for collateral' which are registered on lists; as a general rule, the lombard rate (interest rate) is more or less one per cent above discount rate."
Example Sentences
"The lombard rate is the interest rate at which central banks lend money to commercial banks."
"Yesterday, the Federal Reserve announced a reduction in the lombard rate."
"Banks often rely on the lombard rate as a reference for setting their own borrowing rates."
"The European Central Bank uses the lombard rate to control inflation."
"The lombard rate in Japan is currently set at 0.1%."
