The Official Discount Rate (TUS) is the rate at which the Central Bank grants loans to other banks.
It is the financial market thermometer because its interest rate is applied to banks by their banks, and the interbank rate, which applies to banks' loans.
When the official discount rate increases, there is a credit crunch, that is, a tendency to reduce receivables, as a result of the increase in the cost of money. When, however, the Central Bank tends to reduce the official discount rate, there will be an upward trend in consumption and investment, as a result of the lower cost of money. Area dell'euromodifica wikitesto
From January 1999, in the euro area, the official rate of (TUR) replaces the official discount rate (TUS), which was set for Italy by the Bank of Italy until 31 December 1998.
Until 31 December 2003, the Bank of Italy has determined the "official rate" for the purpose of applying to the legal instruments referring to them as the benchmark. The determination was made on the basis of the rate established periodically by the Governing Council of the European Central Bank, applied to the Eurosystem's main refinancing operations: fixed rate or minimum rate of participation for floating rate operations.
From 1 January 2004, after five years from 1 January 1999, the Bank of Italy has no longer determined the "official rate". The rates used as a basis for determining the "official rate" are available on the website of the ECB Website BCE and on the website of the Bank of Italy Banca d'Italia website. Voices correlateemodify wikitesto Links externalize the wikitesto y wikitesto Links externalize the wikitesto
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