ECB group sounds alarm on ‘sluggish’ Euribor
Money market participants question robustness of key eurozone rate after methodology changes
An influential group of money market participants convened by the European Central Bank has publicly questioned Euribor’s robustness, warning a new hybrid methodology intended to bolster the benchmark’s credibility may have contributed to poor performance during recent rate hikes.
The ECB’s money market contact group (MMCG), which includes money market and treasury representatives from 23 firms, including 19 banks, warned at a December 7 meeting that the “robustness of Euribor as a benchmark
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