Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: At its regular monetary policy meeting on Thursday 22 October, the ECB Governing Council (GC) decided to keep the interest rate on the main refinancing operations as well as the interest rates on the marginal lending facility and the deposit facility unchanged at 0.05%, 0.30% and -0.20% respectively, as expected. At a press conference that followed the conclusion of the meeting, President Mario Draghi adopted a more dovish than expected tone, highlighting the downside risks to growth and inflation outlook from the slowdown in emerging market economies and developments in financial and commodity markets.
GREECE: According to the most recent press reports, the Greek government has so far fulfilled around 19 out of the 49 prior actions required for the release of the next ESM loan disbursement amounting to €2bn. Against this background, there is reportedly risk the disbursement of the said amount to be pushed back further.
SOUTH EASTERN EUROPE
ROMANIA: In a statement released after the end of the visit of a technical mission to Romania, the IMF warned on the fiscal outlook deterioration driven by the tax-cuts induced by the amended Fiscal Code and the wide-spread public sector wage rises. In other news, the finance ministry sold RON 425mn (~€96mn) at an auction on Thursday of 3.25% 2021 T-bonds, less than RON 500mn (~€113mn) initially planned.
SERBIA: The Public Debt Administration allotted at an auction on Thursday ca RSD 11.17bn (~€93mn) worth of 2-year Treasury notes at an average accepted yield of 4.95%, well below 6.8% achieved at a prior auction of similar maturity paper held in September.
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Daily Overview October 23 2015
