Key Euri­bor rates edge lower

The Pak Banker - - Company& -

FRANK­FURT: Key eu­ro­priced bank-to-bank lend­ing rates edged lower on Mon­day, pushed down by the ECB's re­cent prom­ise to keep pro­vid­ing banks with un­lim­ited cash un­til at least mid-April.

The three-month Euri­bor rate tra­di­tion­ally the main gauge of un­se­cured in­ter­bank euro lend­ing and a mix of in­ter­est rate ex­pec­ta­tions and banks' ap­petite for lend­ing --fell to 1.026 per­cent from 1.028 per­cent the pre­vi­ous day. Shorter-term one-week rates also fell, drop­ping to 0.676 per­cent from 0.691 per­cent. Six­month rates re­mained at 1.257 per­cent, while longer-term 12month rates bucked the trend, ris­ing to 1.533 per­cent from 1.530 per­cent. Bank-to-bank 3month lend­ing rates tra­di­tion­ally sit just above the ECB's head­line rate, but the ECB's tac­tic of lend­ing out un­lim­ited cash dur­ing the fi­nan­cial cri­sis had long kept them well be­low the bench­mark rate. -PB News

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