Euribor rates steady, pausing after year-long slide

FRANKFURT, Oct 12 (Reuters) - Key Euribor bank-to-bank lending rates steadied on Friday, as the prospect faded of the European Central Bank loosening policy further with an interest rate cut.

The three-month Euribor rate

, traditionally the main gauge of unsecured bank-to-bank lending, was unchanged at 0.210 percent. The six-month rate eased slightly to 0.415 percent from 0.416 percent.

The rates steadied after ECB policymaker Christian Noyer on Wednesday pushed back against calls for an ECB rate cut, saying ensuring the effective transmission of monetary policy right now was more important than the policy rate.

Shorter term one-week rates remained at 0.081 percent on Friday. Overnight Eonia rates inched up to 0.095 percent from 0.092 percent.

Bank-to-bank lending rates had been falling since November last year when news broke that the ECB was going to flood the banking system with ultra-cheap, three-year cash.

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

Dollar-priced bank-to-bank Euribor lending rates

were mixed, with three-month rates rising to 0.61385 percent from 0.61692 percent and overnight rates unchanged at 0.30846 percent.

The amount of excess cash in the euro zone banking system remains extremely high at about 709 billion euros according to Reuters calculations


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

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


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

For graphic of euro zone liquidity levels click:


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)

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