Market Information Friday 18 March 2022

The Bank of England (BoE) decided yesterday to raise its interest rate by 25 basis points to 0.75%. Since December 2021, the BoE has been slowly raising its interest rate. First from 0.10% to 0.25%, in February 2022 to 0.50% and as of March 17, 2022 to 0.75%. With this, the British central bank expects to decrease inflation, which it expects to peak at 7.25% in April this year. Over the next two years, the BoE expects to meet its inflation target of 2.0%.

Japan’s inflation rate rose on both a monthly and annual basis in February 2022. Compared to January this year, prices increased by 0.5% and an increase of 0.9% was observed compared to February last year. Between September 2020 and September 2021, Japan experienced deflation. Since September 2021, Japanese inflation has thus returned to positive levels. Like many other central banks, the Central Bank of Japan is targeting an annual inflation rate of 2.0%.

Between March 5 and March 12, 214,000 initial jobless claims were filed in the United States. The number of new applications decreased by 15,000 compared to a week earlier. Analysts had taken into account a decrease of 9,000. The total number of applications remains around the level of before the coronapandemic.

The 6M Euribor increased with 2 basis points to -0.39% compared to previous business day. The 10Y Swap decreased with 5 basis points to 1.01% 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.