The deposit rate has been a better guide to the policy stance than the refi rate has.

ECONOMIST: Appraising the European Central Bank

Before the crisis, the ECB would aim to keep overnight interest rates close to the refi rate.

ECONOMIST: Appraising the European Central Bank

Keeping the totemic refi rate above zero may be seen as necessary to prevent inflation expectations from drifting up.

ECONOMIST: Appraising the European Central Bank

Barclays Capital said Wednesday that it expects just a 25 basis point reduction in the main policy rate, known as the refinance, or refi rate, from the European Central Bank.

FORBES: Barclays Expects 25bp Rate Cut In Europe

In effect, the bank now has a target range for short-term rates: the upper bound is the 1% refi rate and the lower bound is the rate the central bank pays on banks' deposits with it, currently 0.25%.

ECONOMIST: Appraising the European Central Bank

The European Central Bank (ECB) certainly remains on tenterhooks with about 30% of futures dealers pricing in a refi-rate (refinancing rate) cut on Thursday.

FORBES: Eurozone Economy Keeps the House Divided