Economics
Euro-Zone Spare Cash Already in Trillions Eyes Another Milestone
- ECB injections may see excess liquidity top 3 trillion euros
- Italian regional vote, debt sales also on bond market’s radar
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The European Central Bank’s ultra-cheap liquidity injections next week may raise the amount of excess cash sloshing around the euro area above 3 trillion euros ($3.6 trillion) for the first time.
The ECB on Thursday will disburse its latest round of loans with interest rates as low as minus 1%. While the take up may pale in comparison to June’s whopping 1.3-trillion-euro allotment -- given that the duration of the loan sweetener is three months shorter -- funding costs have fallen in anticipation of more liquidity.