Market Information Friday 23 February 2024

The European Central Bank (ECB) remains patient with interest rate cuts, considering the vulnerability of the inflation process and the need to maintain continuity and caution. Despite a recent decline in inflation, the risk of premature intervention is deemed greater than postponement, according to the minutes of the latest meeting. According to analysts the ECB bases its policy on incoming data on inflation and growth and emphasizes the importance of moderate wage growth for future monetary policy, while current economic activity and inflation are considered consistent with the current policy stance.

The number of new applications for unemployment benefits in the United States has decreased to 201,000, lower than economists’ expectations. The four-week moving average has also declined, indicating a favourable trend in the labour market.

The Bureau for Economic Policy Analysis (CPB) reports an upward trend in the growth of the Dutch economy. Growth is expected to be 1.1 % in 2024 and 1.6 % in 2025, following a modest growth of 0.1 % in 2023. Purchasing power is expected to increase significantly this year due to higher wages and declining inflation but will not further increase in 2025. Inflation is expected to decrease to 2.9 % this year and 2.8 % next year.

The 6M Euribor decreased with 2 basis points to 3.91% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.78% 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.