ECB to provide unlimited liquidity at weekly auctions

10/9/2008 | Financial Times (free content)

In its boldest move yet, the European Central Bank announced that it will offer banks unlimited liquidity at 3.75% interest, the newly reduced rate. The move means banks will not have to bid at weekly auctions for the amount of capital they want. Additionally, the penalty interest rate on emergency loans was lowered to 4.25%.

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Financial Times (free content)

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