Market Information Friday 19 February 2021

The European Central Bank (ECB) foresees little risk of deflation for the time being due to higher energy prices and the expectation that the economy will recover quickly after the corona restrictions are lifted. This follows from the minutes of the ECB’s policy meeting on Thursday. The ECB expects inflation to increase slowly to 1.4 percent in 2023. Assuming an inflation target of 2.0 percent, the current stimulus policy will be necessary for years to come.

US import prices increased by 1.4 percent in January 2021 compared to December 2020. This follows from figures published by the US Department of Labor on Thursday. Economists had anticipated an increase in import prices of 1.0 percent. Export prices in the United States increased by 2.5 percent in January compared to December 2020.

Figures from the German statistical office Destatis show that producer prices in Germany increased by 0.9 percent in January 2021 compared to January 2020. On a monthly basis, the prices in January 2021 increased by 1.4 percent compared to December 2020. In December 2020, the price level also increased but before that, producer prices decreased for a period of 10 months.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.02% 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.