WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In line with market expectations, the BoE voted by a majority of 7-1 to keep the Bank rate unchanged at 0.25% and maintain the asset purchase programme at £435bn. The BoE policy decision was accompanied by the release of the policy statement which supported the view that, on the assumption of a “smooth” transition to Brexit, monetary policy will likely tighten by a somewhat greater extent than the market is currently pricing-in. However, in spite of the modestly hawkish bias of the BoE statement, GBP came under pressure across the board. EUR also remained under pressure against the USD for the third session in a row on the back of recent ECB dovish comments which added to the view that the Central Bank is in no rush to push interest rates higher or/and scale back its monetary stimulus. Looking at the remainder of the day, focus is on US inflation and retail data for April, both of which are expected to rise on a monthly basis.
GREECE: The multi-bill containing all the prior actions that need to be legislated in the context of the 2nd programme review is expected to be tabled to the Hellenic Parliament by tomorrow, whereas the voting is scheduled for May 18th. Meanwhile, on the sidelines of the G7 Finance Ministers Summit in Bari, the Washington Group will discuss today the issue of the Greek public debt and the potential debt relief framework in view of the May 22nd Eurogroup.
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