rediscount
1
8.8
- noun
- /ˌriːdɪˈskaʊnt/
- Specialized
- The Central Bank of Russia was unable to promote liquidity in the economy by encouraging banks to borrow from it at a low rediscount rate.
- rediscount rate
Examples
-
Instead, it continued fighting the high annual inflation rate of 13 percent in March 2009 via an exorbitant rediscount rate of 13 percent.
Academic text (2010) -
The rediscount rate set by the central bank is crucial for controlling inflation in the economy.
-
As I have noted, the central bank could not lower the rediscount rate significantly because the annual inflation rate (in terms of the Consumer Price Index) was still a high 9.1 percent in November 2009.
Academic text (2010) -
Unlike the U.S. Federal Reserve, the Russian central bank could not lower the rediscount rate in order to facilitate commercial bank borrowing so that the credit crunch in the economy could be overcome via bank lending to businesses.
Academic text (2010) -
Many banks rely on the rediscount option to improve their cash flow during financial crises.
-
Changes in the rediscount rate can significantly impact lending practices across the banking sector.
Synonyms
4
4.9
Interest rate a central bank charges banks for borrowing money
Surface Forms
Morphology
rediscount = rediscount (semi-transparent) = re + discount
The noun comes from the verb, but the specialized sense 'rate or charge for rediscounting' is a financial extension rather than the default zero-derived meaning.
Etymology
Rediscount comes from the parts re- 'again' and discount 'to reduce the value of a bill'. So a rediscount can also mean the rate or charge a bank pays when it has its bills discounted again by the central bank.