Oct. 4 (Bloomberg) -- The European Central Bank said it will take 160.5 billion euros ($211.6 billion) in seven-day term deposits from euro-area banks tomorrow to neutralize the extra money created by its bond purchases.
The Frankfurt-based ECB said it received 100 bids for the deposits totaling 240.6 billion euros. The marginal rate was 1.02 percent. The 160.5 billion euros the ECB will absorb corresponds to the total amount of extra liquidity its bond- purchase program has created since it began in May last year.
The ECB, which sterilizes its bond purchases to ensure they don’t fuel inflation, was forced to start buying Italian and Spanish securities on Aug. 8 to contain Europe’s sovereign debt crisis. The central bank settled purchases worth 3.8 billion euros last week, down from 3.95 billion euros the previous week.
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