Market Information Monday 21 March 2022

Capital markets today are mainly concerned with the conflict between Ukraine and Russia. Ukraine rejected Russia’s ultimatum to give up the city Mariupol. The President of the European Central Bank Lagarde announced in her speech that no indication of stagflation is visible in the Eurozone. Even in the worst case scenario where the conflict between Ukraine and Russia deteriorates further and the oil and gas supply from Russia is halted, the Eurozone is still expected to grow by 2.3 percent.

The Federal Reserve is prepared to raise interest rates further by 0.5 percentage point increments to counter inflation. This follows the Federal Reserve’s earlier move last week that raised interest rates by 0.25 percentage points for the first time in 3 years. Assuming an annual inflation rate of 2 percent, the neutral rate is expected to be around 2.5 percent.

Housing prices in the Netherlands in February rose less rapidly than a month earlier. House prices were 20.2 percent higher in February compared to a year earlier. In January, this was an increase of 21.1 percent which was the largest increase since 1995. In 2013, the housing market had reached a low point and has since been in an upward trend and has risen by 91.7 percent.

The 6M Euribor increased with 1 basis point to -0.39% compared to previous business day. The 10Y Swap increased with 9 basis points to 1.10% 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.