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(Chart 2) How the 'Lombard-type' Lending Works

February 9, 2001
Bank of Japan

  • The concept chart of the overnight call rates without the 'Lombard-type' lending. BOJ guides the overnight call rates to the target level. Rate hikes can be occurred at the term-end, disturbances, etc..
  • The concept chart of the overnight call rates with the 'Lombard-type' lending. BOJ guides the overnight call rates to the target level, and lends requested amount of money at the official discount rate as the 'Lombard-type' lending rate which is set higher than the targeted overnight call rate. This official discount rate (the 'Lombard-type' lending rate) forms ceiling on overnight call rate movement.