Market Information Friday 17 June 2022

The Bank of England announced Thursday that its interest rate will be raised by 25 basis points from 1.00% to 1.25%, the highest level in over 10 years. Many analysts were expecting a 0.50% rate hike, but in the vote, six policymakers favored 25 basis points versus three for 50 basis points. Larger steps may be needed, however, to curb inflation, the central bank indicated.

Japan’s central bank, the Bank of Japan, announced this morning that it will not raise its policy rate. The Bank of Japan is maintaining its short-term interest rate at negative 0.1% and is also maintaining its target for a rate around zero on 10-year government bonds. Inflation in Japan is expected to reach 2% this year, according to the central bank.

The closing price of a barrel of West Texas Intermediate (WTI) was 2.0% higher at the end of the day Thursday than at the beginning of the day. A price of a barrel of WTI now stands at USD 117.58. However, on a weekly basis, the price fell by 4.0%. According to analysts, the various and (in some cases unexpected) interest rate increases have a depressing effect on the oil price. In addition, demand in the United States for gasoline and heating oil has fallen.

The 6M Euribor increased with 6 basis points to 0.24% compared to previous business day. The 10Y Swap increased with 6 basis points to 2.51% 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.