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It requests the Government to address themHBOS the fourth Bank in the country provides also beat forecasts And for the time being the HRD in the FordWe are not completely at the end of the pathAn idea of what happens inside is given outsideA decision made Sunday afternoon with the ElyseeYou come to chair the Arcep for six yearsOfmouth can be positive but also negative87991 points plunging Commerzbank of 13We structure the site with other partnersFinancial institutions can borrow on the interbank market in euros at a rate of 4.86. This is the level that was fixed yesterday on maturity 3 months against 4,912 Monday. The relaxation of the Euribor returned to its position as the end of may is therefore gathering speed.
The initiatives of the European Central Bank (ECB) bear fruit. Jean-Claude Trichet, President of the institution, almost announced a decrease in the rate for November 6. Operators expect a contraction of at least 50 basis points, which, in theory, is reflected in the interbank market.
The terms of the three-month refinancing operation, unveiled Monday, had a stronger impact. The award of tomorrow will allow banks to borrow from the ECB amounts they desire, at a rate equal to the main interest rate, or 3.75. Conditions considered favourable. "This unexpected announcement shows the willingness of the ECB to reduce the level of the Euribor," said Christophe Rieger in Dresdner, which was on a rate of 4.
Wages of confidence
For the ECB, the idea is always the same: lower the cost of borrowing for banks and assure the availability of liquidity. This is why it has increased the allocated sums to banks since the collapse of Lehman. During the week on 17 October, she injected 773 billion euros. The Institute was allocating less than 500 billion before the events of September. Tuesday, in its operation for a week, the banks have received 325 billion euros, an amount that represents all of their claims. This sum is the largest lift for ten months on this type of operation. A sign reflecting, of course, the commitment of the ECB, but the persistence of fears of shortage of liquidity.
Banks continue to store the funds instead to circulate between them on the interbank market. They thus lay an enormous amount to the ECB for one day on the other. On 27 October, EUR 213 billion were thus set deposit, while in normal times, the amounts are far less than 1 billion.
The relaxation of the Euribor therefore is not synonym of normalization of the monetary market. In fact, the interbank rate to 3 months comes only to pass the decline of 0.5 of the interest rates on 8 October. The Euribor was then 5.39. "The ECB overrides yet fully to the money market, says Patrick Jacq at BNP Paribas." The interbank market demand will remain low until the gap between the Euribor and the main interest rate will be high. "In fact, the level of the Euribor must be compared to the anticipated level of the main rate of refinancing of the ECB. At this stage, the differential between the cost of borrowing in the interbank market and (anticipated) of refinancing with the ECB is too important. For the strategist, the situation will quiet down when the Euribor approaches 4.
The blocking of the monetary market also translates into the sphere of credit. The ECB survey shows that the growth of the business credit slowed to 12.1 in September, after 12.6 in August. Credit to individuals, him, increased by 3.8, 3.9. "If there is already the stigma of the tightening of credit conditions, expect much more disturbing data in October", prevents Jean-Louis Mourier, at Aurel.
