Market Information Thursday 2 February 2023

The Federal Reserve raised interest rates by 25 basis points as expected, raising the federal funds rate to a range of 4.50% to 4.75%. In doing so, the central bank reported that further interest rate hikes remain appropriate, in order to restrain the economy sufficiently to return inflation to 2% over time. In December, the Fed already raised interest rates by 50 basis points, following a series of 75-basis point increases.

Consumer prices in the euro zone rose at a slower pace again in January. Eurostat preliminary figures showed this on Wednesday. Prices rose 8.5% year-on-year last month. In December, the increase was 9.2%. In November, inflation recorded 10.1%. Core inflation, an important gauge for the ECB, was 5.2% year-on-year in January. Core inflation was also 5.2% in December.

Oil prices fell sharply on Wednesday, to the lowest level in three weeks. The price for a barrel of West Texas Intermediate crude oil closed 3.1% lower at $76.41 on the New York Mercantile Exchange. The Energy Information Administration reported an increase in oil inventories of 4.1 million barrels over the past week, the sixth consecutive week that oil inventories increased.

The 6M Euribor increased with 3 basis points to 2.99% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.85% 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.