Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Euribor 3-month rate kicks away from record low

Source: Reuters - Tue 6th Apr 2010

The three-month Euribor bankto bank lending rate continued to push away from record lows onTuesday, after banks took far less than expected at the EuropeanCentral Bank's last offering of 6-month cash last week.

The three-month rate EURIBOR, traditionally the maingauge of interbank euro lending and a mix of interest rateexpectations and banks' appetite for unsecured lending, rose toinched to 0.638 percent up from 0.635 percent and extending thegap from last week's 0.634 percent record low.

The shorter-term one-week rate EURIBOR inched up to 0.345 percent from 0.344 percent, while the six-month rate EURIBOR rose to 0.949 percent from 0.945 percent. Theone-year rate EURIBOR followed the trend, jumping to 1.222 percent from 1.214 percent.

The ECB has begun to rein in some of the long-term liquidity provided to markets to combat the financial crisis over the lasttwo years.

Last week banks took far less than expected at its final offering of 6-month funds, but a large excess of cash is expected to remain in the euro zone banking system for much of 2010.

The ECB has promised to keep providing banks with unlimited one-week and one-month loans until at least mid-October. At its April meeting on Thursday, it is expected to keep euro zone interest rates at a record low of 1 percent for the 11th month running.

Euribor rates are fixed daily by the Banking Federation of the European Union (FBE) shortly after 1000 GMT.

Three-month rates form a benchmark for much short-term commercial lending in Europe, and one-week rates give an indication of banks' very short term financing conditions.

Comment on this Story

Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs