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| 3-month Euribor development. |
The Euribor development in 2011 is located in a high noise. Thus, the 3-month Euribor rose from 0.995 percent to 1.083 per cent between 10 January and 2 February 2011. The development of the Euribor for the period twelve months increased from 1.505 percent to 1.666 percent.
The imminent end of the extremely expansive monetary policy by the European Central Bank (ECB) increases the cost of interest on the money markets. A tightening of money supply is accompanied by a rising Euribor interest rate. Added to the attractive inflation comes in the 17 euro countries. In January 2011, the average inflation rate stood at 2.4 percent compared to the same month last year.
Thus the ECB will probably raise even more before the summer of 2011 the key rate 1.00 to 1.25 percent. The 2011 inflation threatens to get out of hand and the previous ECB forecast of +1.8 per cent appears unrealistic. Before the central bank, however, raising the key rate, analysts reckon with the fact that it explains other instruments of monetary control over.
These include the controversial purchase of government bonds program € crisis-ridden countries such as Greece, Ireland and Portugal. In addition, commercial banks, the ECB will not continue in the form of unlimited liquidity by central banks, with maturities between one week and three months provide.
The declining money supply in the euro area suggests a continued increase in Euribor development 2011th Banks can not lend money to the same extent at the central bank. You need to borrow more money to each other. Thus, the money market, the financial crisis largely overcome.
is when it is those Euribor interest rate, which banks charge on loans to one another. It is produced by the European Banking Federation (EBF) daily determined by a sampling method and calculated for thirteen different maturities. Running times vary from one week to one year. The Euribor rate is reported to three decimal places.
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