Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In line with market expectations, the ECB kept its key interest rates unchanged at its policy meeting on Thursday. Disappointing market participants who were positioned for additional ECB non-standard monetary policy measures at the December 4 meeting, the accompanying policy statement read that the ECB will review early next year whether further measures are needed to “address risks of too prolonged a period of low inflation”.
GREECE: According to local newswires, the December 4 Euro Working Group urged the Greek government and the troika to conclude the country’s current program review by December 14 so as euro area officials to have time to launch the required procedures for a six-month extension of Greece’s current bailout program which is scheduled to expire at the end of this year. Meanwhile, local reports quoted an unnamed Greek government official as saying that Greece has not sent any written proposal for an extension of the current bailout program adding that in any case the Greek side could only discuss for a technical extension “which cannot be longer than a few weeks”.
SOUTH EASTERN EUROPE
SERBIA: The Public Debt Administration sold as planned on Thursday RSD 3bn RSD (EUR 24.7m) in 6-month T-Bills.
ROMANIA: The EUR/RON remained trapped within its recent tight trading range of 4.4250/300 on Thursday, while short term RON rates consolidated near recent lows.
BULGARIA: Parliament approved on Thursday the imposition, as of next year, of an 8% tax on income from bank deposit interest.
