WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Risk off sentiment prevailed on Thursday amid heightened market worries over the extent of the recent slowdown in China’s economic growth after the PBoC fixed the USD/CNY higher for the eighth consecutive day. Elsewhere, the latest bout of risk aversion favored the safe-haven appeal of major bond markets. In FX markets, the JPY was among the main outperformers.
GREECE: European Commission spokesman Margaritis Schinas confirmed earlier this week that Greece’s official lenders have received an initial draft of the Greek government’s pension reform plan. According to the local press, the said issue constitutes one of the key prior actions required for the successful completion of Greece’s 1st programme review that is expected to commence in around two weeks.
SOUTH EASTERN EUROPE
ROMANIA: At its monetary policy meeting earlier today, NBR maintained interest rates unchanged at 1.75%. The decision was in line with our expectations and the vast majority by the consensus analysts in Bloomberg’s poll (14 out of 15). However, there was a shift towards further easing as the MRRs for FX denominated liabilities was lowered to 12% from 14% previously.
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