February 24, 2014 / 10:22 AM / 4 years ago

Key Euribor rate inches up after Draghi upbeat about recovery

FRANKFURT, Feb 24 (Reuters) - (ADVISORY: From March 1, 2014,
Reuters news will no longer send systematic alerts or tables on
daily Euribor fixings. At the instruction of the European
Banking Federation, client access to that day's Euribor fixes
will require a fee from next month. Details of this change to a
fee liable service can be found on DN072425 and on the EBF
website here.
 Reuters will alert and write news stories on significant or
newsworthy moves in Euribor rates on merit from that date.) 

The key euro-priced bank-to-bank lending rate inched up on
Monday after the president of the European Central Bank gave an
upbeat assessment of the euro zone recovery.
    "Recovery is still fragile, uneven, it is starting from very
low levels of activity - all the words I have used still apply,
but less and less so," Mario Draghi said at a meeting of Group
20 finance ministers and central bankers in Sydney.
    Earlier, ECB Executive Board member Peter Praet told
Portuguese newspaper Expresso the central bank would "do
whatever is necessary to fulfil" its mandate to keep prices
stable over the medium term, or below but close to 2 percent. 
    "Today, our assessment is that with the recovery that we are
seeing now, inflation will converge in the medium to long term,
to the nearest 1 percent, and in saying this I admit that the
price pressures are quite weak," he said. 
    The ECB, which holds its next policy meeting on March 6, has
set out two scenarios that could trigger fresh policy action: a
deterioration in the medium-term inflation outlook and an
"unwarranted" tightening of short-term money markets.
    On Monday, the three-month Euribor rate,
considered the main gauge of unsecured bank-to-bank lending,
rose slightly to 0.288 percent from 0.287 percent.
    The six-month Euribor rate stayed 0.384
percent. The shorter-term one-week rate inched
lower to 0.191 percent from 0.192 percent.
    The EONIA overnight lending rate rose to 0.171
percent on Friday from 0.169 percent in the previous session.
    Excess liquidity, or the amount of money banks
have beyond what they need for their day-to-day operations, went
up slightly to 125 billion euros, having hit the lowest level
since December 2011 on Friday, at 121 billion euros. 
    For a package of graphics on the ECB, click on:     
    For graphic of euro zone liquidity levels click:       
    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
    1 week       
    2 week       
    1 month      
    2 month      
    3 month      
    6 month      
    9 month      
    1 year       

($1 = 0.7293 euros)

 (Reporting by Frankfurt newsroom; Editing by Toby Chopra)
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