While the spread between the three-month Euribor and the EONIA is now at levels well below 100 basis points as well as at comparable levels or below the corresponding spreads seen in the US and the UK, ECB refinancing operations are also down from a peak of € billion at the beginning of the year to 676 billion last Friday.
There is also mounting evidence that the Eurosystem’s policy measures have been effective in averting a dramatic contraction in credit volumes, though credit developments certainly need a close monitoring in the period ahead. 5.