A change in bank rates may trigger a ripple effect, as it impacts every sphere of a country's economy.
For instance, stock markets prices tend to react to unexpected interest rate changes.
[5] In Brazil, the discount rate is called SELIC (Special System of Liquidation and Custody, translated).
It is the mean term of the overnight rate, fixed by the Committee of Monetary Policy, a branch of the Central Bank of Brazil.
"Future adjustments to the target for the overnight rate will be guided by incoming data as they inform the bank's inflation outlook, keeping in mind continued uncertainty and financial system vulnerabilities.
The General Council serves as an advisory body, the executive board makes day-to-day decisions, and the Governing Council, composed of the executive board and eurozone national central bank governors, sets monetary policy for the euro area.
The ECB's primary objective is to maintain price stability by controlling key interest rates to keep inflation below 2 percent.
It is also responsible for issuing euro banknotes, managing foreign currency reserves, and overseeing financial markets through increased banking union efforts.
[13] The Reserve Bank of India also provides short-term loans to its clients (keeping collateral) at what is called the repo rate.
Primary credit is the Fed's main discount program, and is available to institutions in sound condition for up to 90 days with no restrictions on its use.