Market Information Friday 7 February 2025

The Bank of England, as anticipated, cut the interest rate by 25 basis points yesterday. The reduction lowered the rate from 4.75% to 4.50%, following previous cuts in August and November 2024. Additionally, the central bank halved its growth forecast for 2025 to just 0.75%, while inflation is expected to rise from the current 2.5% to 3.7% in the third quarter.

In the fourth quarter of 2024, labor costs and productivity in the United States increased less than predicted. Costs rose by 3.0%, slightly below the expected 3.3%. Hourly wages grew by 4.2% during this period, according to preliminary figures from U.S. authorities.

In December, retail sales in the eurozone experienced a slight decline, as reported by Eurostat yesterday. Sales decreased by 0.2%, compared to the previous month.

The 6M Euribor is unchanged at 2.48% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.32% 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.