A day before the European Central Bank’s monthly meeting, service sector PMI surveys for euro zone countries will be scrutinized to see if they add to a developing trend of above-forecast economic data.
Greece sent an economic reform plan to its EU and IMF creditors overnight, according to an EU source, and euro zone finance ministers will this morning see the list which is a condition for extending the country’s bailout programme by four months.
G20 finance ministers and central bankers meeting in Istanbul will pledge to act decisively on monetary and fiscal policy if needed to combat the risk of stagnation, according to a draft communique obtained by Reuters last night. As has been customary at these summits, a lot of the discussion implicitly centres on Germany.
A year and a half after Citi became the first major bank to pencil a Bank of England interest rate hike into their forecasts, nobody appears to be any more sure of when this actually will happen.
Last night, after Greece’s new Finance Minister Yanis Varoufakis met Mario Draghi, the European Central Bank cancelled its acceptance of Greek bonds in return for funding, shifting the burden onto Greece’s central bank to finance its lenders, the latest reverse for the country’s new government.