FRANKFURT, Nov 27 (Reuters) - Euro-priced bank-to-bank
lending rates remained unchanged on Wednesday as tightening
liquidity conditions offset indications from some European
Central Bank policymakers that they are open to fresh policy
Excess liquidity, the amount of money in the
market beyond what banks need for their day-to-day operations,
edged up to 154 billion euros but is on a downward path and
close to its lowest level since September 2011. It is also near
levels where it puts upward pressure on market rates.
Short-term money market rates are expected to rise closer to
the ECB's main refinancing rate once excess liquidity falls
below a threshold estimated to be in the range of 100 billion to
200 billion euros.
Concerned about below-target inflation in the euro zone, ECB
policymakers said last week they were open to taking fresh
measures to support the economy, where inflation is running well
German newspaper Sueddeutsche Zeitung reported on Wednesday
that the ECB is considering a new long-term liquidity operation
available only to banks that agree to use the funding to lend to
On Wednesday, the three-month Euribor rate,
traditionally the main gauge of unsecured bank-to-bank lending,
was unchanged at 0.230 percent.
The six-month Euribor rate dipped to 0.327
percent from 0.330 percent while the one-week rate
edged up to 0.137 percent from 0.133 percent. The overnight
Eonia rate dipped to 0.131 percent from 0.132 percent.
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
(Reporting by Frankfurt newsroom)
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