Key Euribor rate on hold after rate cut talk tempered
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)
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