WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: As was widely expected, the BoJ kept its monetary policy unchanged at its meeting earlier today but offered a gloomier assessment on the domestic economy and warned on waning inflation expectations. Against this background, the majority of global equity markets were weaker while the JPY moved higher. The FOMC’s two-day policy meeting which concludes on Wednesday takes centre stage this week.
GREECE: Discussions between the ECB/IMF/EC/ESM mission heads and the Greek authorities in the context of the 1st programme review will continue today with the agenda focusing on energy-related issues, tax evasion, the new Privatization Fund and the management of NPLs. According to the local press, the aim of all involved parts in official discussions is an agreement in principal on the conditionality attached to the review to be reached by the end of this week when official creditors are expected to depart from Athens ahead of the Catholic Easter that falls on March 27th.
SOUTH EASTERN EUROPE
BULGARIA: Consumer prices re-entered a deflationary path in February, with inflation coming in at -0.3% MoM/-0.5% YoY down from +0.0% MoM/+0.0% YoY in January and 0.0% MoM/-0.4% YoY in December.
ROMANIA: The EUR/RON remained bound within a tight trading range of 4.4560-4.4680 last week, while ample liquidity kept money market rates near recent low levels and RON-denominated government bonds staged a recovery after the previous week’s selloff.
SERBIA: The EUR/RSD remained bound within 123.20-123.60 last week, standing close to an all-time peak of near 123.70 hit in late February.
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