The Federal Reserve (Fed) expects to keep its key policy rate at the current 0% -0.25% bandwidth for at least 24 months. Fed chairman Jerome Powell said the crisis has not yet hit rock bottom, despite the better-than-expected job report released last week. The Fed expects an economic contraction in the US of 6.5% for 2020. Unemployment is expected to decrease to 9.3% at the end of this year.
The OECD released economic growth forecasts for 2020 yesterday. This shows that the OECD expects the eurozone economy to contract by 9.1% in 2020. The eurozone economy is expected to recover next year, with a growth of 6.5%. OECD economist Laurence Boone argues that the threat of a second corona wave is causing persistent uncertainty and that now is not the time to increase global trade tensions.
French industrial production fell sharply in April 2020, according to the French national statistics agency Insee. Production decreased in April by 18.6% compared to March 2020. In March 2020, a significant decrease was also noted of 16.2%. On an annual basis, industrial production decreased by 34.2% in April. Due to the strict quarantine measures of the French government, the industry was largely shut down in April.
The 6M Euribor increased with 1 basis point to -0.19% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.04% 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.
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