Market Information Monday 18 July 2022

The International Monetary Fund (IMF) is lowering its forecasted growth for the global economy for the upcoming World Economic Outlook update. This was stated by the Bloomberg news agency based on statements by one of the IMF directors. Multiple factors such as rising food and energy prices, the ongoing coronavirus pandemic and an economic slowdown in China are making it very difficult for policymakers, said Ceyla Pazarbasioglu, one of the IMF directors.

On Tuesday the eurozone inflation figure will be reported. Prices are rising worldwide, and certainly also in Europe. In America the Federal Reserve has responded by increasing the Fed funds, but in Europe we are still waiting for a first-rate hike by the ECB. The bank must also be aware of the weaker southern European countries, which could have problems with their debts if interest rates are high. According to currency experts, this is an interesting week for the euro as the ECB releases its interest rate decision and it will become clear whether gas will start flowing through the Nord Stream 1 pipeline again after the annual maintenance.

The 6M Euribor increased with 9 basis points to 0.45% compared to previous business day. The 10Y Swap decreased with 4 basis points to 1.96% 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.