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Euro Interbank Borrowing Rates See Biggest Daily Surge in Over 10 Years
Date: June 14, 2022
By Yoruk Bahceli (Reuters) -Euro area interbank borrowing rates saw their biggest daily jumps in over 10 years on Tuesday, reflecting huge increases in market expectations for European Central Bank rate hikes. Euribor is a crucial benchmark as all sorts of financial products, from interest rates swaps, savings accounts to mortgages, are priced off of...
How Will the ECB Contain Fragmentation Risk in Euro Area Bond Markets?
Date: June 14, 2022
By Yoruk Bahceli, Dhara Ranasinghe and Stefano Rebaudo LONDON (Reuters) – As the European Central Bank rushes to exit stimulus and raise interest rates to tame inflation, bond markets are testing its ability and willingness to act against the strains that are starting to hit weaker countries in the bloc. The premia investors demand to...
ECB’s Knot: Options for September Are Not Limited to 50 Basis Points
Date: June 14, 2022
PARIS (Reuters) -European Central Bank policymaker Klaas Knot told French newspaper Le Monde in an interview published on Tuesday that the ECB’s options for a September interest rate hike were not limited to 50 basis points. “If conditions stay the same as they are today, we should increase the rate by more than 0.25 percentage...
German Investor Morale Improves in June Though Risks Remain Ahead
Date: June 14, 2022
BERLIN (Reuters) – German investor sentiment rose slightly in June as financial market experts were less pessimistic about the economy, though it remained in negative territory due to numerous risks. The ZEW economic research institute said its economic sentiment index rose to -28.0 points from -34.3 in May. A Reuters poll had pointed to a...
Norway Firms See Growth Slowing in Next Six Months, Survey Says
Date: June 14, 2022
OSLO (Reuters) – Norwegian companies expect economic growth to slow in the coming six months, a central bank survey showed on Tuesday, driven by high inflation, capacity constraints and expected higher interest rates dampening demand. “Constraints have become increasingly widespread across all sectors in the course of spring, except retail trade where somewhat more enterprises...
China Set to Keep Medium-Term Rate Unchanged on Wednesday, Poll Shows
Date: June 14, 2022
SHANGHAI (Reuters) – China’s central bank is expected to keep unchanged for a fifth straight month on Wednesday the borrowing costs on its medium-term policy loans, a Reuters survey of 31 traders and analysts showed. That expectation, held by 30 of the respondents, or nearly 97%, comes despite a pledge by policymakers to step up...