RBC Calls for ECB Rate Cut as Euribor Advances
This article is for subscribers only.
The European Central Bank will cut its main refinancing rate to a record 0.1 percent in March to curb an increase in the euro area’s money-market rates, Royal Bank of Canada said.
The rate at which European banks say they see each other lending in euros for three months climbed to the highest since August 2012 today as ECB liquidity fell. A measure of the cost of overnight unsecured lending in the interbank market climbed above the ECB’s current rate of 0.25 percent yesterday. ECB President Mario Draghi said this month that the bank would be prepared to act to counter an “unwarranted tightening of the short-term money markets.”