Asia Bizz: Interbank Euro Lending Rates Fall Ahead Of ECB (European Central Bank) Meeting
The Interbank Euro lending rates fell just ahead of the European Central Bank’s meeting for the scheme of providing unlimited fixed rates loan. The rates fell even after the Central Bank was expected to keep the rates stabilized at a record low of 1%. The provision of loans to the weaker euro zones remained high even though the bank is unwilling to provide long term loans at a low rate.
The fear which has risen now is that another jilt of a global economic slow down will hit the weak euro zones really hard. This may make the Central bank halt its exit from the provisions of unlimited loans to 2011.
The Euro economy was showing some signs of recovery but then the weaker economies in the euro zone are the main concern. The strong countries need to work a proper monetary plan to bring the whole European economy back on track once more.