The European Central Bank said Thursday that it would keep providing unlimited amounts of cash in operations that underpin eurozone lending at fixed rates aimed at unblocking key interbank markets. The ECB also planned on January 21 to reset the margins on either side of its main lending rate that it charges for overnight loans and that it pays on deposits from commercial banks.
"The main refinancing operations will continue to be carried out through a fixed rate tender procedure with full allotment beyond the maintenance period ending on 20 January 2009," a statement said. "This measure will be in place for as long as needed, and at least until the last allotment of the third maintenance period in 2009 on 31 March," it added.