Bundesbank Cuts Discount and Lombard Rates
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FRANKFURT, West Germany — Deutsche Bundesbank’s Central Bank Council lowered the key discount and Lombard lending rates by one-half percentage point to 4.0% and 5.5%, respectively.
The discount rate applies to banks’ medium-term borrowings from the Bundesbank against bills as collateral. The Lombard is the rate on short-term borrowings against bills as collateral.
In addition, Bundesbank President Karl Otto Poehl said the West German Central Bank will call for tenders on securities repurchase agreements at a fixed 4.6% rate.
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