September 10, 2012 / 3:52 PM / 5 years ago

ECB won't cut deposit rate below zero this year: Reuters Poll

BANGALORE (Reuters) - The European Central Bank will not cut its deposit rate below zero this year, according to a Reuters poll of euro money market traders taken on Monday.

The ECB reduced the deposit rate, which acts as a floor to the cost of money in the open market, to zero in July to deter banks hoarding cash with the central bank instead of lending it.

Twenty-one of 26 traders in the poll said the central bank would not cut it this year, a move that would in effect charge banks to park excess funds with it. Just five said it would.

Traders expect the ECB to allot 129 billion euros ($165 billion) at its weekly seven-day operation this week, a touch higher than the 126 billion euros maturing from last week’s tender.

They also expect the ECB to allot 25 billion euros at its one-month fine-tuning operation this week, as much as the amount maturing from last month’s tender.




MEDIAN 129 25

MEAN 129 23

MODE 125 25

HIGHEST 160 30

LOWEST 120 10

COUNT 28 26 --------------------------------------------------------

Reporting by Yati Himatsingka; Polling by Namrata Anchan and Shaloo Shrivastava; Editing by Toby Chopra

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