Is There A New Alliance For The Greeks?
The main economic events for today have either already passed, with the Bank of Japan Monetary Policy Statement being released first thing this morning, or will happen just after we leave the office today in the case of the release of the minutes of the last Fed meeting. Aside from this, we have a new take on the Greek situation ahead of their repayments to the IMF tomorrow.
In Japan, there was positive noise coming from Bank of Japan Governor Kuroda who advised that long term inflation expectations are rising and that CPI is expected to reach 2% in the 2015/2016 fiscal cycle. QE is expected to continue but may well be adjusted if need be. A moderate economic recovery is taking place and this is expected to continue.
Today, Greek Prime Minister Tsipras is in Moscow meeting with Vladimir Putin ahead of tomorrow’s deadline to repay the IMF €448m. No one really knows the exact nature of these talks but it could be that Greece are exploring other funding options with a possibility being that Russia will help Greece in return for some of its assets.It’s an interesting move by Tsipras considering the current sanctions imposed by the European Union on Russia and would be seen as bad news for Europe if this alliance happened.
The Fed minutes are released this evening and following the removal of being “patient”, it is unlikely that we will see anything particularly earth shattering. The Bank of England starts its two day monetary policy meeting today with the latest rate decision being released tomorrow. Don’t hold your breath for any movement on this one either!