Key Euribor rate steadies

The benchmark Euribor bank-to-bank lending rate was unchanged on Friday, holding steady after a batch of European Central Bank policymakers indicated they saw no need now to make fresh long-term loans (LTROs) to banks. With the amount of excess liquidity in the banking system falling recently, analysts have begun to expect the ECB may offer a new round of LTROs to help hold down money market interest rates and to encourage banks to lend.
ECB President Mario Draghi said last week the ECB was "particularly attentive" to any moves in market rates that could threaten economic recovery or push inflation too low, but stopped short of announcing any immediate action. On Friday, the three-month Euribor rate, traditionally the main gauge of unsecured bank-to-bank lending, was unchanged at 0.227 percent. The six-month Euribor rate was also steady, at 0.340 percent, while the one-week rate edged up to 0.098 percent from 0.097 percent. The overnight Eonia rate dipped to 0.080 percent from 0.081 percent.