Emergency ECB rate rises

EMERGENCY overnight borrowing from the European Central Bank (ECB) rose to just under €2.5bn (£2.1bn), figures showed yesterday, as Eurozone debt fears continued to dominate the mood in financial markets.

Banks usually refrain from using the ECB’s overnight borrowing facility because the interest rate is 0.75 per cent higher than the one per cent that cash is available on offer at its main refinancing operation.

It is typically well above market rates.