Putin says the Russians rule Mariupol. Europe and oil stay green – Ukraine’s attack

In the euro area, interest rates are rising

Interest rates will rise in the euro area, reflecting investor appeals that the European Central Bank (ECB) will raise interest rates by 75 basis points by the end of the year. This idea was confirmed by the statements of a member of the euro area. The Governing Council of the ECB, Martins Kazaks, advocated on Wednesday that the institution could raise interest rates as early as July.

The interest rate on the euro area benchmark, German banks, will rise by 4.3 basis points to 0.894%. The yield on German bonds of this maturity has been in positive territory since 31 January, exceeding the 0.8% threshold on 11 April.

Yields on ten-year bonds rose the most in Italy, rising by 4.7 basis points to 2.552%, while yields on loans of the same maturity in France rose by 2.8 basis points to 1.358%.

In the Iberian Peninsula, Spain’s ten-year debt rose by 4.6 basis points to 1.842%, while Portugal’s concurrent debt rose by 4.4 basis points to 1.878%. Since February 7, the yield on national ten-year bonds has been above 1%, exceeding the psychological limit of 1.8% on April 14th.

Inflation continues to tighten its grip on central banks. As the consumer price index rises to new highs, central banking authorities are ready to tighten monetary policy measures. At the European Central Bank, several members are calling for faster intervention, such as Martins Kazaks, who says the institution could raise interest rates as early as July.

In line with this thinking, money markets are more likely to expect a 25 basis point rate hike in July, followed by two other interest rates of the same rate in September and December.

Leave a Comment