Euribor bank-to-bank lending rates fell on Friday as investors geared up for more monetary easing by the European Central Bank following weak economic data. Falling prices in Germany and France pulled euro zone consumer inflation to a three-year low in April while imports fell 10 percent in March, as new data showed the depth of the bloc's downturn.
ECB President Mario Draghi said last week the ECB would monitor incoming data closely and would be ready to cut rates again, including the deposit rate currently at zero. The ECB cut its main rate to 0.5 percent earlier this month. The three-month Euribor rate, traditionally the main gauge of unsecured bank-to-bank lending, fell to 0.200 percent from 0.202 percent.
The six-month rate fell to 0.297 percent from 0.301 percent. The one-week rate eased to 0.082 percent from 0.083 percent. The overnight Eonia rate rose to 0.082 percent from 0.078 percent. Dollar-priced bank-to-bank Euribor lending rates were mixed, with three-month rates rising to 0.46889 percent from 0.46778 percent and one-week rates down at 0.29333 percent from 0.29444 percent. Excess liquidity in the euro zone banking sector was at 305 billion euros, helping keep market rates below the ECB's refinancing rate.