Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In line with market expectations, the Fed stayed put on interest rates at its two-day policy meeting that concluded late yesterday. Yet, the overall tone of the accompanying statement was more dovish than expected while the FOMC participants’ assessment of appropriate monetary policy suggested a more gradual than previously expected pace of rate tightening ahead.
GREECE: Official discussions between the Greek government and the mission heads in the context of the 1st programme review will continue today with the agenda focusing on the planned income tax code reform and the overhaul of the social security pension system. Speaking to reporters yesterday, government spokeswoman Olga Gerovasili said that a staff level agreement on the conditionality attached to the review could be reached by March 25th and reiterated that the government remains committed to avoid any further cuts in main pensions.
SOUTH EASTERN EUROPE
CESEE MARKETS: Most emerging market assets rallied in morning European trade on Thursday after the Fed adopted a more dovish than anticipated tone at its monetary policy meeting yesterday, signaling a less aggressive than previously envisioned rate-tightening path ahead. Meanwhile, global oil prices extended the prior session’s hefty gains, providing further support to sentiment towards risky assets.
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