One of the basic interest rates you may encounter is the Lombard rate, which refers to banks and how much they can lend.
What is the Lombard rate?
The Lombard rate is the percentage rate set by the Czech National Bank, which determines the rate at which commercial banks can borrow from the CNB against the pledge of securities. The central bank is able to regulate the circulation of money with the help of this rate; when it increases, money becomes more expensive and banks borrow less.
Did you know that the Lombard rate is kind of the opposite of the discount rate?