The rate of discount (of ital. disconto, too lat. discomputare for account for) is the interest rate, to which changes pawn a bank with the central bank (rediscount) can. Thus it can provide liquidity at short notice. As price it pays for it the rate of discount (as anticipated payment of the nominal value).

The rate of discount is specified from a central bank, in Germany 1999 ago of the German Federal Bank. It applied in Germany as basis interest rate and was therefore point of reference in many contracts. With the transition of the competence for the monetary policy to those-European central bank (EZB) the discount transaction was stopped. The EZB determines the key interest.

In contracts and laws the rate of discount was replaced by the basis interest rate, which is regulated with effect since 1 January 2002 in "§ 247 of the civil law book (BGB).

See also

• Bank rate for collateral loans
• Creation of money
• Monetary policy
• Discount policy

Articles in category "Rate of discount"

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