FRANKFURT, May 7 (Reuters) - Euribor bank-to-bank lending
rates held steady on Tuesday, waiting for fresh ECB action after
the central bank's chief, Mario Draghi, stressed its readiness
to cut interest rates again if the economy deteriorates further.
Draghi said on Monday the ECB would monitor incoming data
closely and would be ready to cut rates further, including the
deposit rate currently at zero.
Last week, the ECB lowered its main rate by a quarter
percentage point to a record low 0.50 percent, responding to a
drop in euro zone inflation well below its target level and
On Tuesday, the three-month Euribor rate,
traditionally the main gauge of unsecured bank-to-bank lending,
was unchanged at 0.202 percent.
The six-month rate was also unchanged, at 0.302 percent.
Shorter-term rates were firmer. The one-week rate
edged up to 0.083 percent from 0.082 percent and the overnight
Eonia rate rose to 0.083 percent from 0.077 percent.
Dollar-priced bank-to-bank Euribor lending rates were mixed, with three-month rates
unchanged at 0.47556 percent and one-week rates rising to
0.30333 percent from 0.30000 percent.
Excess liquidity in the euro zone banking
sector was at 315 billion euros, helping keep market rates below
the ECB's refinancing rate.
Draghi said in February he does not expect market rates to
face upward pressure until excess liquidity in the banking
sector falls 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)
Keywords: MARKETS EURIBOR/
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