Market Information Thursday 23 June 2022

The Federal Reserve (FED) plans to continue to raise interest rates until the central bank sees clear evidence that inflation is slowing to the 2% target, chairman Jerome Powell told a Senate committee on Wednesday. The central bank raised the interest rate last week by 0.75 percentage points. That was the largest increase in interest rates since 1994. Powell and his colleagues have hinted that a second increase of 75 basis points may be necessary at the end of July. Fed central bankers expect interest rates to rise to at least 3% this year. Most policymakers expect a rise to 3.25% or 3.50%.

Consumer confidence in the European Union deteriorated in June. This was shown Wednesday by preliminary figures from the European Commission. The index, which reflects confidence, decreased in June by 1.9 percentage points to -24.0. The confidence index for the euro area decreased by 2.4 percentage points to -23.6.

Confidence in the Dutch housing market is falling. This is shown by the housing index published Wednesday by ING. The indicator fell sharply, from 107 to 98. “This is a significant drop in sentiment,” said ING. The decline is mainly due to the stabilisation of house prices and the recent rise in mortgage rates. It is the first measurement since the war in Ukraine. Concerns about their own financial situation is a concern for a third of the respondents. This is not too bad, ING believes. Stagnating house prices do give hope to those selling on who hope to buy their desired home more easily. For many owner-occupiers, 40% of the respondents, the higher energy prices are an incentive to improve sustainability: two out of three respondents want to do so, especially young people under 34. More than half of them mention solar panels as an investment, alongside solar boilers, heat pumps and insulating glass.

The 6M Euribor increased with 2 basis points to 0.29% compared to previous business day. The 10Y Swap decreased with 14 basis points to 2.42% 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.