Market Information Wednesday 21 April 2021

Next Thursday, the European Central Bank (ECB) will convene to discuss monetary policy. It is expected that there will be no policy change. Since the rise in interest rates in the Eurozone has virtually come to a standstill since the last meeting, it is unlikely that the ECB will change its policy. However, with the reopening of the economy, investors will focus on a possible exit strategy from the support programs later in the year, policymakers seem to be divided on the exit strategy.

The financing deficit in Belgium increased in 2020 to 9.4% of the gross domestic product, the government debt has grown to 114%, according to the Belgian National Bank. In an earlier estimate in February, the institution arrived at a deficit of 10.1% and a government debt of 115%.

The Bank Lending Survey of the European Central Bank (ECB) shows that it in the first three months of 2021, banks are more restrictive on lending to companies and families. The survey, which was conducted among 143 banks, shows that because of the uncertain economic recovery, concerns about customer creditworthiness, and the duration of government support measures, European banks are more cautious when it comes to providing funding.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap decreased with 2 basis points to 0.08% 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.