Trichet Says ECB Will Continue Unlimited Loan Offerings to Banks Into 2011
European Central Bank President Jean-Claude Trichet said the ECB will keep offering banks unlimited liquidity into next year.
The ECB will lend financial institutions seven-day and one- month funds at a fixed interest rate until at least Jan. 18, Trichet said at a press conference in Frankfurt today. The ECB will also offer banks three-month loans in October, November and December. The interest rate on those funds will be linked to the ECB’s average benchmark rate over the maturity of the loan.
The ECB today kept its main rate at 1 percent. Before today, policy makers had committed to lend banks unlimited cash at the benchmark rate until Oct. 12.
To contact the reporter on this story: John Fraher in London at jfraher@bloomberg.net
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