The European Central Bank (ECB) will push extra liquidity into the money market to counter "re-emerging risk of volatility", it announced on Friday.
The bank said it had "noted re-emerging tensions in the euro money market", and would introduce more liquidity in its next refinancing, and in all subsequent refinancings until the end of the year. The object was "to limit the volatility of very short term rates", it added.
No details of the amounts involved were released. The next ECB refinancing operation is scheduled for November 28.
Although short-term borrowing rates have been flat or declining since mid-October, last week saw the benchmark Euribor (European interbank offering rate) start to rise again. It ended Friday at 4.7%, its highest since the credit crisis earlier this year.
Topics: European Central Bank (ECB)
More on Regulation
SSM chair also wants to end rule opt-outs that make banks "look stronger than they really are"
Dodd-Frank and Mifid II won't stop market disorder but will penalise hedgers
Floors framework should not overstate risk, says Sweden's bank supervision chief
RBS risk veteran says banking activities pose greater threat
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.