SONIA & EURIBOR can pivot quicker than borrowers can respond
Summary Central Banks in the US (Wednesday), UK and Europe (both Thursday) meet this week All are expected to leave their policy rates unchanged Hedge pricing has improved as markets are pricing in rate cuts for 2024 Central Bank statements and Financial Markets pricing continue to diverge The US Fed, Bank of England and ECB […]
Interest Rate Hedging Policy: A vital tool for borrowers
Interest rate hedging policy is a vital tool to ensure companies manage risk
Euribor 3-month rate set to increase further
Euribor 3 month and Euribor Swap Rates Continue to Climb The European Central Bank (ECB) has raised interest rates by 425 basis points since last summer to 3.75%, the highest level since 2009. The 3-month rate, which influences the pricing of variable rate loans, is at 3.701% – the last time it was at this […]
ECB raises rates by 0.5% and market forecasts another 1.0% before Christmas
ECB surprises with 0.5% move but more on the way The European Central Bank (ECB) raised interest rates by a larger than expected 0.50% at last Thursday’s policy meeting and also flagged that more rate hikes are also on the way. President Lagarde said after the meeting that rates will keep moving higher as long […]
Central Banks poised to tighten
Central Banks are poised to hike interest rates The pressure on Central Banks to raise official interest rates is gaining momentum. Inflation hasn’t been this high for a decade or more and has triggered a noticeable shift in rhetoric from all Central Banks, most recently from the Bank of Canada. Last week, the Canadian central […]