Market Information Friday 19 August 2022

On Thursday, the Turkish central bank announced that it cuts its key rate by 100 basis points from 14% to 13%, despite rising inflation. The key rate was expected to remain unchanged. Inflation rose to 79.6% last month and is at its highest level since two decades, caused by abrupt and uncontrolled declines in the Turkish lira exchange rate, followed by sharp increases in natural gas and electricity prices and soaring commodity prices due to the war in Ukraine.

The Bank of England set out plans on Thursday to auction off around GBP 200 million (USD 241 million) of corporate bonds a week from next month, as it moves ahead with its plans to unwind its huge stimulus push of recent years. The BoE bought nearly GBP 20 billion of investment-grade bonds from non-financial companies under its quantitative easing programme to support the economy and stabilise financial markets after the 2016 Brexit referendum and in the COVID-19 pandemic. The bond-buying programme has made the BoE much more exposed to rises in interest rates.

Existing home sales in the United States fell in July, according to figures published on Thursday by real estate organization NAR. On a monthly basis sales declined 5.9% to 4.8 million homes, which was in line with expectations.

The 6M Euribor increased with 1 basis point to 0.75% compared to previous business day. The 10Y Swap increased with 2 basis points to 1.91% 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.