Some 90% of the Dutch population were convinced of this in July last year, according to a Bank survey. Estimated inflation was then as much as twice as high as actual inflation. In itself, this perceived inflation is understandable. People had to become familiar with the new currency and the new prices, while strong economic growth had driven up Dutch inflation.
Third, the central bank is finalizing an interest rate swap tool banks can rely on to minimize interest rate risk. The tool is expected to become available in Q2. The NBU will launchlong-term refinancing loans with terms of up to five years.