Εβδομαδιαία Επισκόπηση 12-18 Απριλίου 2016

The CBRT cuts its overnight lending rate by 50 bps

The fiscal balance improves in Q1:16, supported by capital spending restraint and large privatisation proceeds

External rebalancing continues in 2M:16, due to a favourable energy bill

Current account deficit widens to 1.3% of GDP on a 12-month rolling basis in February from 1.1% at end-2015, due to stronger domestic demand

Headline inflation falls to a 21-month low of -1.5% y-o-y in March

A better trade performance and lower income outflows push the current account surplus to 2.5% of GDP on a 12-month rolling basis in February

Headline inflation slows to 0.6% y-o-y in March, due to favourable food and energy prices

Political crisis escalates due to the violation of the Przino agreement

Tourist arrivals reach an all-time high of 42.4k in 2M:16

Economic growth strengthens to a 5-year high of 2.6% in FY:15

Record-low inflation encourages the BoA to proceed with an additional 25 bp policy rate cut in April

Headline deflation declines to -2.5% y-o-y in March from -2.6% in February, due to slower core deflation

Tourist arrivals rise sharply in November-March, mainly due to heightening security concerns in neighbouring competitors

Headline inflation declines by 0.1 pp to 9.1% y-o-y between February and March

CBE likely to keep its policy rates on hold until the end of the current fiscal year