rediscount rate

American  

noun

1. the rate charged by the Federal Reserve Bank to member banks for rediscounting commercial paper.

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Example Sentences

The central bank also will cut the rediscount rate to 5%, after lowering it to 6% from 7% on March 26, and the overnight interest rate in the country's interbank market to 8% from 9%.

From The Wall Street Journal

In a move defying the loose monetary policy dominating other European central banks, the 10-strong panel raised the benchmark seven-day intervention rate to 4.75%, the rediscount rate to 5.00%, the Lombard rate to 6.25% and the ...

From The Wall Street Journal

The last time the Fed maintained such prolonged monetary support for the economy was from 1937 to 1947 when it kept its “rediscount rate,” or the discount it applied to commercial banks borrowing cash against high quality promissory notes they had issued, at 1 percent.

From BusinessWeek

Investors piled into currencies seen as safe-havens after China increased its rediscount rate by 0.45 percentage points to 2.25% and raised interest rates over the holiday period ...

From The Wall Street Journal

To boost the rediscount rate now would cost the Treasury millions in added interest.

From Time Magazine Archive