Figure 4  T erm lending rates and overnight index swaps in %  in basis points  6  200  5 150 4  100  3  2 50 1  0 01/07  0 04/07  07/07  10/07  01/08  04/08  Spread (rh axis)  rate in MRO (lh axis)  3M EURIBOR (lh axis)  3M EONIA swap (lh axis)  07/08  10/08  01/09  04/09  07/09  Source: ECB, Thomson Reuters.
Unsecured interbank rates play an important role as benchmark for interest rates paid on loans to households and firms in the euro area. Thus high spreads between the ECB policy rate and money market rates increased financing costs of the broad economy above the level desired by the ECB. In other words, the pass-through of policy rates to the economy was impaired.