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Banks to gulp half a trillion euros from ECB

Banks to gulp half a trillion euros from ECB
Reuters – 3 hours ago.. .
By Jonathan Cable and Yati Himatsingka

LONDON (Reuters) – The European Central Bank will lend nearly half a trillion euros to banks at rock-bottom rates next week through its three-year refinancing operation, despite signs institutions already have adequate liquidity, Reuters polls showed on Monday.

A poll of more than 60 economists showed a median expectation that the ECB will allot 492 billion euros ($647.6 billion) at 1 percent in the second of two 3-year loans on February 29. Forecasts, taken in the past few days, ranged from 200 billion to 1 trillion euros.

A separate poll of 29 money market traders said the ECB would lend slightly less, 470 billion euros, with forecasts ranging from 200 billion to 750 billion euros. Both consensus figures are roughly the size of the first such operation, which totaled 489 billion

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