FRANKFURT Jan 10 Banks took no money from the
European Central Bank's overnight facility on Wednesday for the
first time in a year and a half, data from the ECB showed on
Banks are usually reluctant to use the ECB's instant access
facility - also known as its 'emergency' window - because it
charges 0.75 percentage points more interest than normal ECB
funding, and overnight borrowing has been low since the start of
On Wednesday, no bank took any money from the ECB and the
overnight loan facility stood at zero for the first time since
August 28, 2011, the ECB data showed.
"This is just a coincidence. There is no rational matter
behind this," said a money market trader who declined to be
named, noting that overnight borrowing had been low for weeks.
While it is too early to identify a trend, 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.
The ECB Governing Council will discuss interest rates at its
policy meeting on Thursday and a Reuters ECB poll showed that
the majority of economists expects no change in the main
(Reporting by Eva Kuehnen)