Banks Awash With Spare Cash Send ECB Funding Rate to Record Low
- Euro area’s incoming ESTR benchmark breaks October record
- Flood of cheap stimulus loans from the ECB sets tone amid lull
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A closely-watched euro-area interbank borrowing rate fell to a record, dragged down by all the money sloshing around the economy.
The Euro Short-Term Rate, known as ESTR, slid 0.5 basis points to minus 0.557%, the lowest level since the measure was introduced last year.