Market Information Tuesday 27 February

Yesterday, the European Union Council adopted rules to enable Instant Payments in the euro currency 24/7, aiming to enhance competition for European payment firms against their U.S. counterparts. This regulation allows customers to transfer euros within 10 seconds at any time, even outside traditional business hours, not only domestically but also across EU borders.

According to Christian Schulz, Vice Chief Economist Europe at the U.S. bank Citi, the German economic model needs to adapt. Germany’s overreliance on exports is outdated, considering the evolving global landscape. Citi emphasizes the need for domestic sources to drive economic growth.

The Bank of England governor, Andrew Bailey, stated that Britain is displaying signs of recovery from its mild recession and anticipates a boost when interest rates decrease later this year. Bailey dismissed claims that the central bank’s hesitancy to reduce borrowing costs despite declining inflation indicated a lag in response and clarified that rate cuts were on the horizon.

The 6M Euribor is unchanged at 3.91% compared to previous business day. The 10Y Swap increased with 8 basis points 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.