In the macro-economists language, the rate of interest required for external equilibrium to finance deficits and/or to stop the currency from taking a beating on the domestic foreign exchange market may be way above that rate of interest required for internal equilibrium.
Two years ago I said on this same occasion that the Lombard rate I introduced in 1999 would be replaced by a Repo rate depending on the evolution of the domestic money market. We have since studied a framework that would best meet the specificities of our banking industry.