Euribor rates hit new record lows

Eurozone bank-to-bank lending rates hit new all-time lows yesterday, pulled down by record low ECB interest rates and its move to stop paying banks interest on their overnight deposits. The ECB’s overnight deposit rate, which it cut to zero on 5 July, acts as a floor for money market rates as banks only lend to rival banks if they are able to earn a better rate of interest than at the ECB. Three-month Euribor rates hit a new all-time low of 0.477 per cent yesterday, down from 0.486 per cent.