WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Eurozone January’s CPI inflation was revised downward and inflation expectations dropped to a fresh record low, supporting the view for further monetary policy stimulus by the ECB at the next meeting scheduled for March 10th. Against this background, the EUR remained under pressure while German government bonds retained a firm tone.
GREECE: Presenting the Annual Report on the Greek economy, BoG Governor Yannis Stournaras emphasized that the recession is expected to bottom out and the economy to see a slight recovery during the second half of this year, provided that political stability is maintained and uncertainty is eliminated. On the data front, euro-denominated deposits & repos of domestic households and non-financial corporations in Greek MFIs excluding the Bank of Greece (BoG) dropped in January by €1.1bn coming in at ca €122.2bn.
SOUTH EASTERN EUROPE
ROMANIA: The consolidated government surplus came in at RON4.73bn or 0.63% of projected GDP in January 2016 compared to RON3.95bn or 0.56% of GDP in January 2015.
CESEE MARKETS: Most emerging stock markets rallied in early European trade on Friday as a rebound in global oil prices and raw materials boosted related equity. Optimism ahead of the G20 finance ministers’ meeting also provided support. In a similar vein, most regional currencies and government bonds firmed earlier today.
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