Market information

Monday, March 22, 2010

Inflation in India reached a level of almost 10% on an annual basis in February. As a consequence, the central bank increased interest rates to prevent overheating of the economy. The refinancing rate increased from 3.25% to 3.5% and this was the first increase in two years. However, analysts expect that this measure is taken too late. They expect that the economy, biggest of Asia after Japan and China, is already overheated. Last week, the World Bank pointed out that China should take monetary measures as well to prevent a real estate bubble.

In a hearing from the Dutch parliament today, a better representation of pension holders in the board of pension funds will be discussed. Especially the participation of younger people is reviewed, since their pension benefits run the most risk in the future. In the Netherlands there are around 600 pension funds, which together hold EUR 650 bln worth of pension assets. Because of higher life expectancy and the economic crisis, the assets of pension funds are expected to be dried up within 30 to 40 years time, when holding cash benefits and policy the same.

The 6M Euribor remained unchanged at 0.95%. The 10Y Swap rate decreased 2 basis points to 3.31%.

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