Euribor rates dip ahead of ECB meeting
FRANKFURT, Jan 10 (Reuters) - Key Euribor bank-to-bank lending rates dipped on Thursday, breaking a two-day steady streak ahead of a European Central Bank policy meeting at which no change in official rates is expected. Economists polled by Reuters forecast the ECB will keep the main interest rate on hold at 0.75 percent this week, but they could not agree on the chances of a cut in the next few months due to a murky economic outlook. 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. But expectations of a cut subsequently faded after hawkish comments from other policymakers. Banks took no money from the ECB's overnight facility on Wednesday for the first time in a year and a half. Continuous low borrowing from the ECB could be an indication that stress in the interbank market is easing and banks can get funding more easily elsewhere rather than having to turn to the central bank. On Thursday, three-month Euribor rates, traditionally the main gauge of unsecured bank-to-bank lending, dipped to 0.190 percent from 0.192 percent. The six-month rate eased to 0.325 percent from 0.326 percent, while the one-week rate was steady at 0.080 percent. The overnight Eonia rate firmed to 0.069 percent from 0.067 percent. Dollar-priced bank-to-bank Euribor lending rates were lower, with three-month rates easing to 0.52083 percent from 0.52167 percent and one-week rates falling to 0.36083 percent from 0.36417 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' 1 week 2 week 3 week 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8 month 9 month 10 month 11 month 1 year (Reporting by Frankfurt newsroom. Editing by Jeremy Gaunt.)
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