Market Information Wednesday 22 May 2024

German home prices are expected to decline by 2% in 2024, a smaller drop than in 2023, due to anticipated lower borrowing costs. Despite this, the supply of affordable homes will continue to fall short of demand with a significant shortfall predicted over the next two to three years.

The International Monetary Fund warned the UK government against implementing pre-election tax cuts, suggesting that future tax increases might be necessary to meet debt targets. While the IMF upgraded the UK’s economic growth forecast for 2024 to 0.7%, it criticized recent tax policies and projected that the public debt will continue to rise, advising the government to consider new revenue-raising measures.

China announced significant measures to stabilize its struggling property sector, including 1 trillion yuan in extra funding and eased mortgage rules. Despite these efforts, analysts remain cautious about their effectiveness in boosting private sector demand and restoring confidence in the real estate market.

The 6M Euribor is unchanged at 3.79% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.77% 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.