Market Information Friday 15 August 2025

US wholesale prices rose by 0.9% in July, exceeding expectations due to higher costs for goods and services. This surge has effectively eliminated the chances of a larger 0.5% interest rate cut by the Federal Reserve in September, with markets now expecting a 0.25% cut next month and another in October. The increase in services inflation raises concerns for Fed policymakers, suggesting inflation could be more persistent. While Treasury Secretary Scott Bessent initially pushed for a bigger cut, he now supports starting with a smaller one.

The eurozone economy grew by 0.1% in Q2 2025 compared to the previous quarter, matching earlier estimates but slowing from 0.6% growth in Q1. On an annual basis, GDP rose 1.4%, slightly below the 1.5% growth in Q1, also in line with earlier estimates.

Norges Bank kept its key interest rate unchanged at 4.25% but signalled a likely rate cut later in 2025 if the economy evolves as expected. As inflation is persistent, the central bank still sees the need for restrictive monetary policy. Economic projections remain broadly unchanged since June, when the bank surprised markets by cutting rates by 0.25 percentage points amid faster-than-expected inflation decline.

The 6M Euribor is unchanged at 2.10% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.67% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.