Market Information Friday 15 December 2023

European Central Bank President Christine Lagarde emphasized during an explanation of the ECB’s interest rate decision on Thursday that there are currently no plans to lower interest rates. She stated that there has been no discussion about lowering interest rates and reiterated that the ECB will continue to depend on incoming data for its policy decisions.

On Thursday, the ECB also unveiled new economic projections. The eurozone’s economy is expected to grow by 0.6% this year and by 0.8% next year. In both 2025 and 2026, the gross domestic product is projected to increase by 1.5%.

For 2023, the central bank anticipates an average inflation rate of 5.4%. Inflation is expected to moderate to 2.7% next year and further to 2.1% in 2025. The ECB believes that by 2026, inflation will fall below 2%.

On Thursday, the Bank of England announced that it has once again decided not to raise interest rates, with a majority of the votes. The Bank Rate remains unchanged at 5.25%. As stated by the Bank of England, inflation has decreased as expected, but key indicators for sustained inflation in the United Kingdom remain elevated.

The 6M Euribor decreased with 1 basis point to 3.95% compared to previous business day. The 10Y Swap decreased with 5 basis points to 2.59% 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.