The German business confidence index declined more than expected this month and reached the lowest level in almost ten years. The Ifo Insitute – a Munich-based economic research institution – published a business climate index of 94.3 in August, compared to 95.7 in July.
Economic growth in the Organization for Economic Cooperation and Development (OECD) area declined in the second quarter of 2019 to 0.5% on a quarterly basis, compared to 0.6% in previous quarter. This decreasing economic growth is mainly caused by Great Britain and Germany.
Last week, Bavarian Prime Minister Markus Söder came forward with a proposal in anticipation of the expected ECB interest rate cut next month. He wants to exempt savers from a negative interest rate as long as their balance does not exceed EUR 100,000. However, the German Banking Association disagrees with this proposal, arguing that a ban on negative interest rates is an excessive market intervention that will restrict the freedom of banks too severely.
The 6M Euribor increased with 1 basis point to -0.41% compared to previous business day. The 10Y Swap is unchanged at -0.22% 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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