FRANKFURT, Feb 7 Euribor bank-to-bank lending
rates eased slightly on Thursday ahead of the European Central
Bank's policy decision later in the day.
The ECB is widely expected to leave its main rate at a
record low of 0.75 percent. A Reuters poll of 75 economists
forecast last week the ECB would not change its rates until July
2014 at least - the end of the forecast horizon.
Euribor rates have climbed since the ECB announced on Jan.
25 that banks would repay a larger-than-expected amount in
long-term loans - a move that has driven down excess liquidity
in the financial system to around 495 billion euros.
In total, the ECB pumped more than 1 trillion euros into the
banking system with two offerings of three-year loans, one in
December 2011 and one in February 2012 as it tried to avert a
The heavy oversupply of ECB cash has long depressed the
rates banks charge each other on lending markets, but a further
significant repayment could drive rates higher.
On Thursday, three-month Euribor rates,
traditionally the main gauge of unsecured bank-to-bank lending,
fell to 0.232 percent from 0.233 percent.
The six-month rate inched lower to 0.378 percent from 0.379
percent and the one-week rate eased to 0.083
percent from 0.084 percent. The overnight Eonia rate
slumped to 0.067 percent on Wednesday from 0.074 percent the
Dollar-priced bank-to-bank Euribor lending rates
were firmer, with three-month rates
rising to 0.48455 percent from 0.48273 percent and one-week
rates up at 0.32818 percent from 0.32727 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
(Reporting by Frankfurt newsroom)