Market Information Monday 7 February 2022

The high inflation is worrying for the purchasing power of the average Dutch person. The European Central Bank plans to raise interest rates for the first time by the end of this year, according to Klaas Knot. About 60% of higher inflation is attributable to energy. The Central Bank indicates that the vast majority of inflation comes from abroad. This means that the Netherlands has become less prosperous as a country. Inflation in the eurozone will largely be above 4 percent this year.

Investors look back on a busy week with concerns over ongoing inflation, central bank decisions, disappointing US tech data and a better-than-expected US jobs report. The Bank of England has again raised interest rates by 25 basis points to 0.50 percent, in line with expectations of increasing inflation. The US jobs report has provided positive surprises. The figures show that the number of jobs increased by 467,000 in January.

European companies have never before had to pay so much for their CO2 emissions. The price for European emission rights, with which companies pay for their pollution, is 96.45 euros per tonne of CO2. Part of the price increase is a result of higher gas prices. According to analysts, many investors are speculating on a further increase in emission rights. CO2-saving measures can now almost or completely cover costs, given the sharp price increases.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap increased with 6 basis points to 0.64% 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.