Market Information Thursday 8 September 2022

The Bank of Canada hiked interest rates by 75-basis points to a 14-year high on Wednesday, as expected. The BOC states the policy rate would need to go higher still given the fight against raging inflation. The central bank increased its policy rate to 3.25% from 2.5%, matching analyst forecasts.

Germany’s relief package to help citizens and companies cope with soaring inflation will amount to 13 billion euro ($12.86 billion) this year, of which the federal government will contribute 12 billion euro, the finance ministry said on Wednesday. With year-on-year inflation running at 7.9% in August, Berlin has been under pressure to provide further aid for consumers and businesses hit by a surge in energy prices.

The dollar increased to a fresh 24-year peak on the yen and retested multi year highs on the euro and sterling as economic problems in Europe contrasted with a strong U.S. economy. The dollar soared as high as 144.99 yen , up 1.5%, hitting the level for the first time since August 1998.

The 6M Euribor increased with 4 basis points to 1.34% compared to previous business day. The 10Y Swap decreased with 11 basis points to 2.44% 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.