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ECB Begins Transition of Benchmark Short-Term Interest Rate

  • Central bank starts publishing euro short-term rate Wednesday
  • ECB’s recent rate cut seen fully factored into money markets
Updated on

The European Central Bank began its official transition to a new benchmark short-term interest rate Wednesday, as global regulators move away from tainted Libor gauges.

The new rate, known as ESTR, which reflects overnight borrowing costs of banks in the monetary bloc, fixed at -0.549% for Oct. 1, the central bank said on its website.