Overnight borrowing from ECB hits 7-month high
FRANKFURT Nov 1 (Reuters) - Banks took 7.75 billion euros from the European Central Bank's emergency overnight lending facility on Wednesday, the highest in seven months, ECB data showed on Thursday, with traders pointing to a month-end liquidity bottleneck as the reason.
"There is always less liquidity at the market at the end of the month as some banks cannot lend over month-end," a euro zone money market trader said.
"It's probably going to disappear in the next few days."
Banks have to pay 1.5 percent interest on the overnight money, compared with 0.75 percent on regular ECB liquidity operations. (Reporting by Sakari Suoninen)
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