Euribor rates little changed as rate cut hopes fade

Thu Jan 3, 2013 5:18am EST

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FRANKFURT, Jan 3 (Reuters) - Key Euribor bank-to-bank
lending rates were hardly changed on Thursday from the previous
day after comments from a clutch of European Central Bank
policymakers eroded hopes they will cut official rates next
week.
    Joerg Asmussen, a member of the ECB's Executive Board, said
late last month he would be "very reluctant" about the ECB
cutting its deposit rate - now at zero - any further, adding
that "our (monetary) policy is very accommodative".
 
    Another board member, Yves Mersch, said he did not see the
logic of a debate about the ECB cutting its main rate from a
record low of 0.75 percent. A third board member, Peter Praet,
said earlier last month there was little room to cut.
    The ECB kept rates on hold last month despite new forecasts
suggesting the euro area economy will contract in 2013. 
    Comments from ECB President Mario Draghi, saying there had
been a "wide discussion" about rates, had fuelled expectation
shortly after December's policy meeting that the bank could cut
rates further.  
    On Thursday, three-month Euribor rates,
traditionally the main gauge of unsecured bank-to-bank lending,
inched up to 0.189 percent from 0.188 percent.
    The six-month rate rose to 0.320 percent from 0.319 percent
while the one-week rate edged lower to 0.079
percent from 0.080 percent. The overnight Eonia rate 
fell back to 0.062 percent, having jumped to 0.131 percent
earlier in the week. 
    Dollar-priced bank-to-bank Euribor lending rates
  were lower, with three-month rates
falling to 0.53333 percent from 0.53417 percent and one-week
rates down at 0.37333 percent from 0.37500 percent.
    
    
    Euribor rates are fixed daily by the Banking Federation of 
the European Union (FBE) shortly after 0900 GMT.
    * For a table of the latest Euribor fixings for terms of one
week to one year, double click on 
    * For a table of the previous day's fixings of EONIA swap 
rates, which show market expectations for future overnight 
lending rates, double click on 
    * For graphs of historic Euribor and EONIA swap rates, right
click on the links in angle brackets below, and select 'Related 
Graph'  
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($1 = 0.7867 euros)

 (Reporting by Frankfurt newsroom; Editing by Ruth Pitchford)
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