Market Information Wednesday 17 November 2021

Inflation will return to regular levels next year and then fall below the 2% target. The ECB still assumes that the current high inflation is temporary, President Lagarde reiterated to the European Parliament. She again tried to temper market expectations. The ECB will not raise interest rates next year, while the market is expecting rate hikes.

The dollar rose to a 16-month high after data showed retail sales were higher than expected last month, while the euro slumped amid growth concerns and a surge in COVID-19 cases in Europe. The dollar index was up to 95.928, the highest value since July 2020, as U.S. retail sales rose 1.7% in October, while a rise of 1.4% was expected.

Hungary’s central bank has raised its key rate by 0.3 percentage point, despite previous promises not to do so. The interest rate is now at 2.1%. Therefore, the Hungarian central bank joins Poland, Romania and the Czech Republic by increasing their interest rates. In June, Hungary’s central bank decided to raise the key rate by 0.3 percentage point each month, but that percentage went down to 0.15 percentage point in September and October.

The 6M Euribor is unchanged at -0.53% compared to previous business day. The 10Y Swap is unchanged at 0.20% 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.