Eurozone banking system is a bit different than US banking system. Because of that is difficult to compare ECB rates to FED funds rate.
ECB has 3 key interest rates:
FED funds rate
- Main refinancing operations - provides the bulk of liquidity to the banking system. When liquidity is needed, a bank can borrow directly from ECB. Main refinancing operations rate is the interest rate banks pay when they borrow money from the ECB for one week.
- Deposit facility - is the intetest rate, which banks may use to make overnight deposits with the Eurosystem.
- Marginal lending facility - is the rate, which offers overnight credit to banks from the Eurosystem.
- is the interest rate at which commercial banks and other depository institutions borrow and lend their excess reserves (funds held at Federal Reserve Banks) to each other overnight.