Market Information Friday 22 July 2022

The European Central Bank (ECB) raised its policy rates by 50 basis points. This is the ECB’s first interest rate increase in 11 years. As a result of this increase, the deposit rate now stands at 0.00%, the policy rate at 0.50% and the penalty rate at 0.75%. The interest rate increase is higher than expected. The ECB previously hinted at a 25 basis point increase, but now believes that a more substantial increase is appropriate to curb high inflation. The next ECB meeting is scheduled for September 8.

Existing private homes in the Netherlands have become considerably more expensive in June. This was shown this morning by figures from Statistics Netherlands (CBS) and the Land Registry. Houses were on average 16.6% more expensive than one year earlier. In May and April, the increase was respectively 18.8% and 19.7%, so the increase seems to be slowing down.

The growth of the Japanese economy appears to be slowing down again. The service sector index came in at 51.2 in July and the manufacturing index at 52.2. A value above 50 indicates growth, but both indices were higher in June this year. In particular, growth for the services sector has stalled. In June, the index was still at 54.0. Growth in Japan’s manufacturing sector appears to have fallen less sharply. The June index reading was 52.7.

The 6M Euribor increased with 11 basis points to 0.64% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.02% 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.