WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: With Brexit jitters dominating the scene ahead of the UK’s EU referendum on June 23rd and following the disappointing US May’s non-farm payrolls report that was released earlier this month, the Fed is widely expected to stay put on its monetary policy today maintaining the target range for the federal funds rate unchanged at 0.25% to 0.50%. The Fed is also scheduled to issue its updated economic projections along with the updated interest rate projections which will likely continue to show two rate hikes by the end of this year. FOMC Chair Janet Yellen is scheduled to hold a news conference half an hour after the rate policy announcement expected at 18:00 GMT.
GREECE: Echoing recent comments by ESM Managing Director Klaus Regling, Eurogroup President Jeroen Dijsselbloem said on Tuesday that he expects the ESM to approve the release of the next loan sub-tranche to Greece amounting to €7.5bn at its next meeting on Thursday, June 16th. He acknowledged that the medium-term primary surplus target of 3.5%-of-GDP is not realistic in the long-run and it may be lowered after 2018.
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