Jan. 24 (Bloomberg) -- The rate at which European banks say they see each other lending in euros for three months declined for a 24th day, according to the European Banking Federation.
The euro interbank offered rate, or Euribor, for such loans dropped one basis point, or 0.01 percentage point, to 1.158 percent, EBF data showed. That’s the longest run of daily declines since September 2009, and the lowest rate since March 3, according to data compiled by Bloomberg.
The rate has fallen every trading day since the European Central Bank allotted a record 489 billion euros ($489 billion) of three-year loans to 523 banks on Dec. 21 to encourage lending and prevent a credit shortage. The ECB is scheduled to conduct its second longer-term refinancing operation next month.
“The persistent fall in Euribor rates is a reflection that there is plenty of cash in the system and the prospect of more to come with the next three-year LTRO,” said Orlando Green, a fixed-income strategist at Credit Agricole Corporate & Investment Bank in London.
--Editors: Nicholas Reynolds, Matthew Brown
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