Key Euribor bank-to-bank lending rates edged higher on Friday after comments from a clutch of European Central Bank policymakers playing down the chances of another ECB rate cut. Joerg Asmussen, a member of the ECB's Executive Board, said late on Tuesday he would be "very reluctant" about the ECB cutting its deposit rate - now at zero - any further, adding that "our (monetary) policy is very accommodative."

Another board member, Yves Mersch, said this week he did not see the logic of a debate about the ECB cutting its main rate from a record low of 0.75 percent. A third board member, Peter Praet, said earlier this month there is little room to cut. The ECB kept rates on hold this month despite new forecasts suggesting the euro area economy will contract next year as it has this.

On Friday, three-month Euribor rates, traditionally the main gauge of unsecured bank-to-bank lending, ticked higher to 0.184 from 0.183 percent. The six-month rate was unchanged at 0.318 percent while the one-week rate rose to 0.088 percent from 0.078 percent. The overnight Eonia rate dipped to 0.069 percent from 0.070 percent. Dollar-priced bank-to-bank Euribor lending rates were firmer, with three-month rates rising to 0.57250 percent from 0.56583 percent and one-week rates jumping to 0.60583 percent from 0.37250 percent.

Copyright Reuters, 2012