Market Information Friday 5 November 2021

The Bank of England (BoE) unexpectedly maintained its monetary policy. This left the policy rate of 0.10% and the GBP 895 billion buyback program unchanged. For many economists, the news came as a surprise after Andrew Bailey, governor of the central bank, had previously indicated that monetary policy should be used to counter rising inflation. Annual inflation in the UK was 3.2% in August, 3.1% in September and October is also expected to be above 3.0%. The BoE is targeting an inflation rate of 2.0%.

Between October 23 and 30, 269,000 initial jobless claims were filed in the United States. Economists were expecting 275,000 new applications, but the number unexpectedly fell by 14,000 from a week earlier. The number of applications thus reached its lowest point since March 14, 2020. The four-week moving average also fell to its lowest point since March 2020, at 284,750.

Yesterday figures from the Central Bureau of Statistics showed that in October this year the Netherlands had the highest inflation rate in almost 20 years. In October, the annual inflation rate was 3.4%. In September the inflation rate was 2.7%. The increase in inflation was mainly due to higher gas and electricity prices. The year-on-year price increase of gas was 30.6 percent in October and electricity prices were 39.6 percent higher than in October 2020.

The 6M Euribor decreased with 1 basis point to -0.54% compared to previous business day. The 10Y Swap decreased with 6 basis points to 0.15% 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.