The Lombard rate originated in Deutschland...a short-term interest rate for loans for commercial banks, originally set by Germany’s central bank. But the Lombard rate has come a long way since then.
On the eve of the 21st century in 1999, the European Central Bank (ECB) said “mine!,” setting the Lombard rate for the entire European Union (EU). The EU originally brought euros, the currency, on the scene, requiring management of this new cross-border currency. The Lombard rate has been renamed as the “interest rain on main,” so...you might not hear much about it in the now-times.
The Lombard rate is now the EU’s discount interest rate in the U.S. The discount rate in the U.S. is the cost of borrowing for big banks to keep their reserve requirements high enough, set by the U.S.’s central bank, the Federal Reserve (or “Fed”).