WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In line with market expectations, the ECB decided at yesterday’s Governing Council meeting to keep its key interest rates unchanged as well as the parameters of the QE programme. However, speaking at the post-meeting press conference, President Mario Draghi left the door open for further policy stimulus at the December monetary policy meeting. Reacting to his comment that the ECB did not discuss tapering the QE programme, the EUR moved lower while German Bunds firmed. Focus today is on DBRS’s review on the Portugal’s sovereign credit rating which is currently set one-notch above junk (BBB low) with a stable outlook.
GREECE: The negotiations with official lenders in the context of the 2nd programme review are scheduled to commence today with a number of high-level meetings between the institutions and Greek officials. The Hellenic Statistical Authority (ELSTAT) announced yesterday the 2012-15 fiscal data, in the context of the second Excessive Deficit Procedure (EDP) notification of 2016. The 2015 general government deficit in ESA 2010 terms is estimated at €13.2 bn or 7.5% of GDP, while the gross consolidated General Government debt at year-end 2015 is estimated at € 311.7 bn or 177.4% of GDP.
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