ENM: ECB to lend banks 80 billion euros in weekly operation
BANGALORE: Banks are expected to borrow 80 billion euros ($103 billion) from the European Central Bank at its seven-day refinancing tender this week, slightly less than the amount maturing, a Reuters poll showed on Monday.
Forecasts in the survey of 27 euro money market traders ranged from 70 billion euros to 90 billion euros. Banks borrowed 83.7 billion euros from the ECB last week.
The ECB will leave its key refi rate on hold at 0.75 percent when it meets on Thursday, according to the median of over 70 economists polled by Reuters last week, but flagging growth will prompt it to cut rates to a new record low early next year.
Three-month Euribor rates, the main gauge of unsecured bank-to-bank lending, fell to 0.196 percent on Monday from Friday's 0.197 percent.
Results of the ECB's weekly tender will be announced on Tuesday and the amount allotted on Wednesday. The start date is Oct. 31 and the maturity date is Nov. 7.
