Market Information Friday 17 December 2021

It is unlikely that the European Central Bank (ECB) will raise the interest rate in 2022. This was announced by ECB President Christine Lagarde on Thursday in an explanation of the interest rate decision. The main policy rate remains at 0.00% and the penalty rate at 0.25%. The deposit rate was maintained at 0.50% negative. In addition, the ECB announced that it would, in principle, halt its Pandemic Emergency Purchase Programme (PEPP) at the end of March. In order to avoid problems for European bond markets, the Asset Purchase Programme (APP) will be increased from the current EUR 20 billion to EUR 40 billion per month from the second quarter of 2022. In the third quarter, the purchases will go down again to EUR 30 billion and from October 2022 onwards the ECB will start buying EUR 20 billion worth of bonds every month through the APP. Lagarde stressed that the current uncertainty calls for flexibility in monetary policy. She said the measures announced on Thursday were supported by a majority of the ECB’s governing council, but some policymakers disagreed with some of the measures.

The number of new passenger car registrations in the Netherlands fell by 17.5% year-on-year in November. In the European Union, the number of registrations decreased in November by 20.5%. This was reported by the European branch organisation for the car industry ACEA on Friday. In the Netherlands, the number of registrations decreased last month to 27,333 cars. After eleven months, there is a decrease of 8.3% on an annual basis. In France, the number of registrations decreased by 3.2% in November. In Germany, the world’s fifth largest car producer, registrations fell by 31.7% in November.

Retail sales in the United Kingdom rose more than expected in November. This was shown Friday by figures from the British Office of Statistics. Sales volumes rose by 1.4% on a monthly basis, after an increase of 0.8% in October. On an annual basis, there was an increase of 4.7%. Compared to February 2020, sales were 7.2% higher.

The 6M Euribor is unchanged at -0.55% compared to previous business day. The 10Y Swap is unchanged at 0.12% 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.