ECB deposit rate cut risks leaving banks high and dry at the short end.

The article deals with the European Central Bank's (ECB) decision to reduce its deposit rate by 25 basis points to zero and its implication for the euro commercial paper market. It notes that the decision can lead to a dearth of demand for banks' short term debt when the longer term refinancing operations of the ECB end. It adds that the ECB decision creates more funding uncertainty for financial institutions.