the refinancing discount rate, also known as the rediscount rate, refers to the interest rate paid by commercial banks or specialized banks when they rediscount the unexpired qualified commercial bills that have been discounted with customers to the central bank. The central bank can influence the deposit reserve and money supply of commercial banks through the adjustment of rediscount rate.

rediscount is a special form of loans provided by the central bank to commercial banks, and it is also an important means for the central bank to control the credit scale and money supply. When the domestic inflation trend or the existing inflation intensifies, the central bank will increase the rediscount rate and increase the financing cost of commercial banks, so that commercial banks will reduce the rediscount to the central bank due to the increase of discount cost, forcing them to tighten credit, causing the reduction of money supply sites and the increase of market interest rates, so as to achieve the purpose of stabilizing prices.