Key Euribor rate steady as markets assess ECB stance

Wed Feb 12, 2014 5:19am EST

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FRANKFURT, Feb 12 (Reuters) - The key euro-priced
bank-to-bank lending rate remained unchanged on Wednesday after
the European Central Bank opted to wait and see how price
pressures develop before deciding whether to act.
    ECB President Mario Draghi said after the bank's Thursday
meeting that more information was needed to determine the future
paths of inflation, growth, market and exchange rates before
deciding if and what kind of intervention would be required. 
    Draghi also pointed out that recent volatility in short-term
interbank lending rates had not filtered through to longer term
rates. 
    Last month, a sharp drop in excess liquidity, or the amount
of money banks have beyond what they need for their day-to-day
operations, pushed overnight lending rates above the ECB's main
refinancing rate several times. 
    After a temporary increase, excess liquidity is
now back a similar levels, standing at 146 billion euros, but
overnight rates have remained well below the 0.25 percent refi
rate.
    In January, Draghi said an unwarranted increase in
short-term money market rates and a worsening of the medium-term
outlook for inflation could trigger more policy action. 
    The three-month Euribor rate, traditionally
the main gauge of unsecured bank-to-bank lending, stayed at
0.291 percent.
    The six-month Euribor rate ticked down to
0.390 percent from 0.391 percent while the shorter-term one-week
rate rose to 0.198 percent from 0.193 percent.
    The EONIA overnight lending rate eased to 0.122
percent on Tuesday from 0.127 percent on Monday.
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
    For a package of graphics on the ECB, click on:     
    link.reuters.com/neg32s   
    For graphic of euro zone liquidity levels click:       
    link.reuters.com/qeq25s 
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
    Euribor rates are fixed daily by the Banking Federation of 
the European Union (FBE) shortly after 1000 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       
    1 month      
    2 month      
    3 month      
    6 month      
    9 month      
    1 year       

 (Reporting by Frankfurt newsroom; Editing by Andrew Heavens)
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