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MONEY MARKETS-Interbank rates at record low as ECB holds policy

(Updates with Libor fixings in paragraph 3)

FRANKFURT, Oct 5 (Reuters) - Benchmark euro zone bank-to-bank lending rates hit fresh euro-era lows on Friday, a day after the European Central Bank held interest rates at a record low of 0.75 percent and said it did not even discuss changing them.

The three-month Euribor rate

, seen as the main gauge of unsecured bank-to-bank lending, fell to 0.215 percent from 0.216 percent. Equivalent Libor rates, set by a smaller panel of banks in London, fixed at 0.14571 percent

from 0.14643 percent. Shorter term one-week rates remained at 0.081 percent while overnight Eonia rates rose to 0.095 percent from 0.085 percent.

Bank-to-bank lending rates have been in virtual freefall since November last year when the ECB announced a plan to flood the banking system with ultra-cheap, three-year cash.

The central bank's decision in July to stop paying interest on overnight deposits has allowed the drop to continue by removing the 0.25 percent floor for the money market.

Dollar-priced bank-to-bank Euribor lending rates

also inched down, with three-month rates falling to 0.61750 percent from 0.63077 percent and overnight dollar rates edging down to 0.30750 percent from 0.31000 percent.

The amount of excess cash in the euro zone banking system remains extremely high at 712 billion euros according to Reuters calculations

.

With it set to remain high for the foreseeable future, money market experts are instead focused on whether the ECB could copy Denmark's example and start charging banks to deposit cash overnight with it.

However, after initial interest in the idea, some policymakers have expressed reservations about it.

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For a package of graphics on the ECB, click on:

For graphic of euro zone liquidity levels click:

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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 Graph' 1 week 2 week 3 week 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8 month 9 month 10 month 11 month 1 year

(Reporting by Frankfurt newsroom)

((frankfurt.newsroom@reuters.com)(+49 69 7565 1209))

Keywords: MARKETS EURIBOR/