Euribor rates dip ahead of ECB meeting

Thu Jan 10, 2013 5:21am EST

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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'  
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 (Reporting by Frankfurt newsroom. Editing by Jeremy Gaunt.)
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