European Central Bank overnight deposit scale rises as borrowing demand remains low

⑴ Data released by the European Central Bank on Wednesday showed that financial institutions borrowed approximately €2 million through the overnight lending facility, further declining from around €7 million the previous day. ⑵ The usage of the overnight deposit facility was about €1.95 trillion, slightly up from about €1.95 trillion the previous day. ⑶ The balance of the current account holdings was about €333.2 billion, down from approximately €335.7 billion the previous day. ⑷ Overall, overnight borrowing demand remains at an extremely low level, while the usage of deposit facilities continues to rise, reflecting that liquidity in the banking system remains abundant. ⑸ Going forward, attention should be paid to changes in the European Central Bank's balance sheet and the impact of monetary policy expectations on money market interest rates.