Market Information Thursday 18 September 2025

The Federal Reserve cut its benchmark rate by 25 basis points to a range of 4.00 to 4.25 per cent, with officials signalling two more reductions this year amid signs of a weakening labour market. The decision, backed by an 11-to-1 vote, came as unemployment rose to 4.3 per cent, the highest since 2021, and job creation slowed sharply with nearly one million fewer positions than previously reported. The Dow gained over 300 points while Treasury yields slipped.

Food price inflation in the UK accelerated to 5.1% in August, the fastest pace in 19 months, driven by surging costs of beef, butter, milk, and chocolate. Overall consumer price growth held at 3.8%, well above the Bank of England’s 2% target, as wage pressures and domestic tax policies fed through to higher prices. Analysts note that UK inflation now outpaces France and Germany, with rising food bills eroding real wage gains and straining household budgets.

The European Commission has proposed targeted tariffs on €5.8 billion of Israeli imports and sanctions on two senior Israeli ministers over human rights abuses in Gaza, marking a major shift in EU policy. The measures, affecting 37 percent of Israel’s exports to the EU and adding €220 million in costs, aim to pressure the Israeli government without harming society at large. The proposals face likely opposition from key EU countries, while Brussels also plans to suspend €14 million in direct support for Israeli projects.

The 6M Euribor decreased with 1 basis point to 2.09% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.63% 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.