Market Information Wednesday 19 March 2025

After cutting the Bank Rate to 4.50% in February, the Bank of England is expected to pause on Thursday. There are internal disagreements within the Monetary Policy Committee on the pace of rate cuts. Some market participants anticipate a cautious approach, with potential cuts in May and a total of 100 basis points by early 2026. Other participants expect three more 25-basis-point cuts in 2025. U.S. import tariffs could impact UK inflation and investment. The Bank of England’s decision will be announced Thursday afternoon.

Oil prices declined as market weakness and concerns over a global supply glut outweighed rising tensions in the Middle East. West Texas Intermediate dropped to around $67 per barrel ahead of a key Federal Reserve decision. Despite Israeli airstrikes in Gaza and U.S. pressure on Iran, traders see geopolitical risks as selling opportunities. Crude remains on track for a quarterly loss due to trade war concerns and an expected OPEC production increase.

The German parliament approved an investment fund and easing of debt limits on Tuesday. Chancellor Merz’s plans are expected to boost EU growth. Defense stocks surged amid increased military spending expectations, while the euro strengthened on geopolitical developments.

The 6M Euribor is unchanged at 2.42% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.69% 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.