Mixed reaction to central bank liquidity push

Bankers welcomed the action by central banks in December to ease liquidity in the interbank market, but were sceptical about how long the effect of the intervention would last.

Although the injection of liquidity by five central banks solved short-term funding problems over the year end, the banks will struggle to restore normality in the medium term, said analysts.

"The underlying problem doesn't go away," said Christoph Rieger, an interest rate strategist at Dresdner Kleinwort in Frankfurt

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