(AP) — LONDON - The cost of three-month euro loans between banks slid Thursday by its biggest amount in six months in the wake of the European Central Bank's successful 12-month money auction, while the equivalent dollar rate barely eased to a new low after a key policy statement from the U.S. Federal Reserve.
The cost of three-month loans in euros-known as the European Interbank Offered Rate, or Euribor-fell a little over 0.04 of a percentage point to 1.14 percent after the European Central Bank successfully concluded its first 12-month refinancing operation, flooding the banks with cash and super-low interest rates in the hope they will start lending more normally again.
The 12-month rate also dropped around 0.04 percentage points to just below 1.54, while the one-month rate dropped a massive 0.06 percentage point to just above 0.78 percent
