Market Information Tuesday 19 August 2025

Brazil’s central bank is keeping its benchmark rate at 15%, the highest in nearly 20 years, while it evaluates whether this level is sufficient to bring inflation down to the 3% target. Economic policy director Diogo Guillen said rates will likely remain unchanged for a prolonged period, despite recent softer inflation data. He noted that inflation expectations remain unanchored and that economic growth is slowing as a result of past monetary tightening.

Oil prices closed higher on Monday as U.S. President Trump met with Ukraine’s Volodymyr Zelensky and voiced optimism about a possible end to the war with Russia. West Texas Intermediate (WTI) rose 1% to $63.42 per barrel, while Brent gained 1.1% to $66.60. Analysts, however, warned that Trump’s tariffs could weaken demand in the coming months while OPEC continues raising output, pointing to potential future pressure on prices despite current geopolitical risks.

European exports face significant challenges due to both U.S. trade barriers and increasing competition from China. Exports to the U.S. and China decreased over 10% in June compared with last year. European companies are struggling to find alternative markets, while imports from China rose by 16.7%. Industries such as chemicals are particularly affected, as high energy costs combined with the influx of cheaper Chinese goods have even forced some factories in the Netherlands to close.

The 6M Euribor is unchanged at 2.11% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.70% 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.