Market Information Thursday 19 September 2019

The Fed lowered its federal funds rate by 25 basis points to a range of 1.75% and 2.00%. This is the second decrease in interest rates. Fed chairman Jerome Powell called the decrease ‘an insurance policy’ against future adverse developments. American President Trump is not satisfied with the decrease, which he considers to be too small. Trump wants interest rates to be much lower and even asked for negative interest rates last week, as with the European Central Bank.

The European Statistical Office Eurostat reported that inflation (HICP) in the Eurozone remained stable at 1% on a yearly basis in August 2019. For the European Union as a whole, the inflation rate was measured at 1.4% year-on-year in August, just as it was in July. Core inflation, excluding the impact of volatile prices, for energy, food, beverages and tobacco, also remains unchanged at 0.9%.

According to Statistics Netherlands (CBS), the number of unemployed persons has increased by an average of 7,000 per month to 321,000 over the last three months. This means that 3.5% of the working population aged 15 to 75, who are actively seeking for work, is unemployed. In July this was 3.4%. The increase in the number of unemployed people predominantly occurred in the age groups up to 45 years.

The 6M Euribor decreased with 1 basis point to -0.37% compared to previous business day. The 10Y Swap decreased with 4 basis points to -0.10% 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.