Weekly Report 14-20 June 2016

CBRT cuts its overnight lending rate by 50 bps to 9.0%

Primary fiscal balance improves in 5M:16, due to large non-recurring proceeds and capital spending cuts

Headline inflation falls to a low of -3.5% y-o-y in May, due to lower food and energy prices

Current account deficit jumps to 2.4% of GDP on a 12-month rolling basis in April, mainly due to higher income outflows

Headline inflation at -2.0% y-o-y in May on higher food prices

Current account surplus rises to 2.3% of GDP in April on a 12-month rolling basis on improved trade and income balances

Headline inflation embarks on a mild upward trend, rising to 0.7% y-o-y in May

Tourist arrivals rise by 12.5% y-o-y to an all-time high of 111.3k in 4M:16

Headline deflation remains stable at -0.7% y-o-y in May

Headline inflation picks up to 0.7% y-o-y in May, due to a deterioration in food and core inflation

The cycle of monetary policy easing has likely come to an end

Fiscal performance improves in the first four months of the year, on the back of early dividend payments by the Central Bank

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

Tourist arrivals continue to experience a sharp decline due to security concerns

Customer deposit growth reaches a high of 19.1% y-o-y in March, supported by the gradual return of confidence