WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: As was expected, the Fed decided at its two-day policy meeting which was concluded late yesterday, to raise the target range for the federal funds rate by 25bps to 0.25%-0.50%, the first increase since June 2006. The decision was unanimous. With respect to the pace of rate tightening ahead, the statement suggested that it will be gradual, dependent on the US economic outlook as well as global financial developments. In reaction to the FOMC policy announcement, global equity markets firmed, the USD moved higher while US Treasuries weakened with short-dated bonds underperforming.
GREECE: The Euroworking Group is expected to convene through teleconference today to decide about the disbursement of the next EFSF loan installment (€1bn) to Greece. In other news, the ECB Governing Council is reportedly considering revisiting the issue of re-instating the waiver for Greek sovereign bonds at its 21st January 2016 policy meeting.
SOUTH EASTERN EUROPE
BULGARIA: The Bulgarian Central Bank (BNB) projected that economic activity will moderate in the last quarter of the year in its latest economic review report which was released yesterday.
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