The ECB on Wednesday pumped hundreds of billions of euros in one-year loans into the eurozone’s banking system, providing record amounts of emergency finance in a bid to unlock credit markets. The move came as the Fed said it was keeping interest rates on hold. The ECB meanwhile lent €442.2bn for 12 months to more than 1,100 banks at its current benchmark interest rate of 1%. High demand for the funds, in what was the ECB’s first ever auction for one-year loans, reflected a view among banks that emergency funding may not be available again on such favourable terms.
