European Central Bank policymakers have agreed on the central bank’s new inflation target. It will be 2%, while since 2003 the target has been for a monetary depreciation of less than, but close to, 2% in the medium term. Policymakers have also agreed that inflation above the target will be tolerated temporarily, having been well below the target for a decade, as reported by Reuters news agency based on three anonymous sources within the central bank.
The Bureau for Economic Policy Analysis expects the Dutch economy to recover from the corona crisis even faster than previously anticipated. The economy is expected to grow by 3.2% this year, according to a forecast published by the CPB on Tuesday morning. In the previous estimate from March, the Planning Bureau still assumed economic growth of 2.2%.
German finance minister Olaf Scholz is targeting EUR 99.7 billion in additional bonds to be issued next year to recover from the corona pandemic. The issuance is higher than the EUR 81.5 billion foreseen in a previous federal plan, Bloomberg news agency reported, citing two senior government officials who wished to remain anonymous. This would bring the total amount to be borrowed this year and next year to more than EUR 340 billion.
The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap is unchanged at 0.11% 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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