Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: All eyes this week are on the BoJ and the Fed monetary policy meetings that both conclude on Wednesday (21 September). Fed Funds futures currently assign a probability of c. 15% for a 25bps Fed rate hike this week while recent comments from a number of Fed officials revealed a considerable divergence in their views about the Fed’s future policy deliberations. The BoJ is expected to proceed with a cut in the deposit facility rate further into negative territory and adjust the breakdown of bond purchases while keeping the money base unchanged to steepen the JGB yield curve.
GREECE: The Greek government reportedly intends to bring to the Hellenic Parliament this week a multi-bill containing the remaining legislative measures pertaining to the pending prior actions for the release of the €2.8bn sub-tranche. If all goes as planned, the 29th September Euroworking Group is expected to verify the completion of pending issues while the October 10th Eurogroup will approve the release of the €2.8bn sub-tranche. This time plan will allow the 2nd programme review to commence around mid-October.
SOUTH EASTERN EUROPE
CYPRUS: On Friday evening, Standard and Poor’s upgraded the sovereign credit rating of Cyprus by one notch (from BB- to BB) with a positive outlook.
ROMANIA: The EUR/RON ended last week little changed, remaining bound within a very tight range between 4.4430/4.4540. On the money market, the short term RON interest rates were little changed, while trading in government bonds was choppy.
SERBIA: The EUR/RSD pair traded in a tight range of 123.00 -123.35 last week.
Viewers can log herebelow and read the full report: Daily Overview September 19 2016
