FRANKFURT, July 9 Key Euribor bank-to-bank
lending rates held at the previous day's level on Tuesday after
European Central Bank chief Mario Draghi said it remained to be
seen whether the unprecedented move of providing forward
guidance would be sufficient.
The ECB declared last week it would keep interest rates at
record lows for an extended period and may yet cut further.
"We'll have to see what the market reaction has been, is and
will be to this statement," Draghi told European lawmakers on
Monday when asked if the ECB move would be enough, leaving open
whether it could do more if the ploy fails to convince markets.
Over the weekend, ECB policymakers Christian Noyer and
Benoit Coeure had said the bank's 'forward guidance' move was a
change in communication but meant no change to its strategy.
The three-month Euribor rate, traditionally
the main gauge of unsecured bank-to-bank lending, was on Tuesday
unchanged at 0.217 percent.
The six-month rate remained at 0.328 percent
and the one-week rate was unchanged at 0.095
percent. The overnight Eonia rate fell to 0.084 percent
from 0.087 percent.
Dollar-priced bank-to-bank Euribor lending rates
were mixed, with three-month rates
remaining at 0.46286 percent and one-week falling to 0.29286
percent from 0.29429 percent.
Excess liquidity in the euro zone banking
sector is at 269 billion euros, still high enough to keep market
rates below the ECB's refinancing rate.
ECB President Mario Draghi said in February that he did not
expect market rates to face upward pressure until excess
liquidity in the banking sector fell below 200 billion euros.
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)