Bog's Interim Report on Monetary Policy 2018; It Sees GDP Rise by 2.3 Pct in 2019
The Bank of Greece submitted its Interim Report on Monetary Policy 2018 to the Greek Parliament and the Cabinet: Continuing the reform effort is a necessary condition for growth and a sustainable market return of the Greek State
This Interim Report on Monetary policy is the first to be submitted by the Bank of Greece since the completion of the third economic adjustment programme in August 2018. The completion of the programme is an important milestone, with a positive impact on economic sentiment and the prospects of the Greek economy. However, as pointed out in the Bank’s Monetary Policy Report of July 2018, a sustainable return of the Greek State to the international sovereign bond markets would be the safest indication that the economy has indeed exited the crisis. In the months since the programme’s completion, the Greek economy has continued its recovery. However, sovereign bond yields remain high, amid turbulence in the international financial markets, especially in Italy, but also amid concerns about a possible reversal of reforms agreed upon under the programme. As a result, Greek businesses and households face high borrowing costs, indicating that the Greek economy has not yet returned to normality.