Market Information Tuesday 4 October 2022

The British government is abandoning controversial tax plans to scrap the top rate of income tax after all, the British Chancellor of the Exchequer announced yesterday. The plan had been announced more than a week ago but subsequently attracted widespread criticism. The idea was to cut the top income tax bracket from 45% to 40% on salaries above £150,000 a year, to ensure that the wealthiest would spend more money. The less fortunate Britons would also benefit through the trickledown effect, but many economists already doubted whether this theory would work in practice.

Figures published by the U.S. government show that construction spending in the United States fell harder than expected in August. On a monthly basis, a decline of 0.2% was expected which in reality came out to 0.7%. On an annual basis, however, construction spending in August rose 8.5%.

The Reserve Bank of Australia’s latest interest rate decision shows that Australia’s central bank is raising interest rates by another 25 basis points to 2.60%. The Reserve Bank of Australia expects inflation to increase some more in the coming period before it falls toward the targeted 2%. The bank expects inflation for 2022 to be around 7.75%.

The 6M Euribor increased with 1 basis point to 1.81% compared to previous business day. The 10Y Swap decreased with 20 basis points to 2.88% 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.