ECB liquidity floods euro money market and distorts indicators

LONDON - A key euro zone interbank money-market rate is trading below the European Central Bank’s own official rate for the first time in over five months, a sign of the vast amount of cash that has been poured into the system to combat the COVID-19 crisis.

The ECB has flooded the system with so much liquidity that the rate at which banks borrow from each other — Euribor — is within a whisker of a record low. “The system is so flooded with liquidity that banks are essentially telling you they don’t need the money,” said Peter Chatwell, head of rates at Mizuho.

In the shadow to xi / shadow / banking industries

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Jim Cramer debuts new mantra: 'No news is good news''I'm always searching for a mantra for any given market, and I think I've found it for this one,' the 'Mad Money' host said. Please world or better put - People of the world and keepers of our planet earth we need leadership in our current era of world eclipse of human kind. I am red and blue party driven. The big question of this era is who can lead us in the era of human eclipse
Source: CNBC - 🏆 12. / 72 Read more »