Record low Euribor lending rates
Last week, the European Central Bank injected nearly half a trillion euros into money markets. The injection has led eurozone bank-to-bank lending rates to fall to new record lows. The three-month Euribor rate is usually the main gauge of interbank euro lending, a mix of interest rate expectations, and banks' appetite for lending, which ended up falling to 1.108% from the previous low of 1.120%.
The rates from one-week to one-year have set new all-time lows as the banks are still trying to deal with the EUR442 billion the European Central Bank unloaded into the system at one percent. The ECB have cut interest rates drastically and poured hundreds of billions of euros into the money markets to help push the Euribor levels down ever since the collapse of Lehman Brothers, which had the three-month rate at an all time high.
The record low lending rates have the euro exchange rate at GBP0.8503 and USD1.4050.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.