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Discount rate
An interest rate that a central bank charges depository institutions that borrow reserves from it.
📖 Definitions of "Discount rate"
noun
- 1
An interest rate that a central bank charges depository institutions that borrow reserves from it.
- 2
The interest rate used to discount future cashflows of a financial instrument; the annual interest rate used to decrease the amounts of future cashflows to yield their present value.
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