WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Addressing the European Parliament’s Economic and Monetary Affairs Committee yesterday, ECB President Mari Draghi stated that downside risks stemming from global growth and world trade are clearly visible and that inflation dynamics have somewhat weakened. The ECB President added that the Central Bank is ready to use all the instruments available in its mandate to secure its medium-term price stability objective, reinforcing expectations for further ECB monetary policy stimulus at the upcoming policy meeting scheduled for December 3rd.
GREECE: Speaking to a local TV station yesterday, government spokeswoman Olga Gerovasili said that the Greek government will have fulfilled byMonday (November 16) all pending issues and the Euro Working Group could then give the green light for the release of the €10bn amount earmarked for recapitalizing Greece’s four systemic banks. / Addressing the European Parliament’s Economic and Monetary Affairs Committee yesterday, ECB President Mario Draghi suggested that Greece’s sovereign bonds could be eligible for the ECB’s QE programme provided that certain conditions are in place, including, inter alia, successful completion of the 1st programme review and no violation of the issue and issuer limits for public sector purchase programme (PSPP).
SOUTH EASTERN EUROPE
BULGARIA: Deflation on an annual basis resurfaced again in October for the first time since last July. In more detail, CPI came in at +0.2%MoM/-0.6%YoY in October, from -0.1%MoM/+0.1%YoY in September compared to -0.2%MoM/-0.2%YoY in July.
SERBIA: The National Bank of Serbia (NBS) decided at its MPC meeting on Thursday to stay put on its monetary policy and keep the key policy rate unchanged at the current record low level of 4.50%. Meanwhile, HICP rose by 1.4%YoY in line with the prior month’s reading, remaining below the lower bound of the NBS 4±1.5% target tolerance band for the 20th month running.
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