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The European Central Bank said on Thursday that it will launch a new unsecured overnight interest rate before 2020, as the bank reforms the benchmark rates.
The Governing Council decided to develop a euro unsecured overnight interest rate based on data already available to the Eurosystem, the bank said in a statement.
The interest rate would be produced before 2020 and would complement existing benchmark rates produced by the private sector and serve as a backstop reference rate.
The high-level features of this new overnight interest rate will be communicated to market participants in the course of 2018, the bank said.
