Key Euribor rate on hold after rate cut talk tempered

FRANKFURT Wed Feb 20, 2013 9:44pm IST

An illuminated euro sign is seen in front of the headquarters of the European Central Bank (ECB) in the late evening in Frankfurt January 8, 2013. REUTERS/Kai Pfaffenbach

An illuminated euro sign is seen in front of the headquarters of the European Central Bank (ECB) in the late evening in Frankfurt January 8, 2013.

Credit: Reuters/Kai Pfaffenbach

FRANKFURT (Reuters) - The key Euribor bank-to-bank lending rate remained unchanged on Wednesday after a European Central Bank policymaker said a policy rate cut would not help much of the euro zone.

A recent rise in the euro foreign exchange rate has fuelled market expectations that the ECB could react by cutting interest rates further or deploying other forms of policy easing.

But comments by Bank of France Governor Christian Noyer that "there is no particular interest in cutting rates by a few cents if it only impacts Germany or core countries" tempered those expectations.

The ECB's main refinancing rate is already at a record-low level of 0.75 percent.

On Wednesday, three-month Euribor rates, traditionally the main gauge of unsecured bank-to-bank lending, remained unchanged at 0.221 percent.

The six-month rate fell to 0.356 percent from 0.357 percent while the one-week rate ticked up to 0.081 percent from 0.080 percent. The overnight Eonia rate rose to 0.062 percent from 0.058 percent.

Dollar-priced bank-to-bank Euribor lending rates were mixed, with three-month rates falling to 0.48455 percent from 0.48545 percent and one-week rates rising to 0.32455 percent from 0.32364 percent.

(Reporting by Frankfurt newsroom)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage