TBC Capital published Update From The CHief Economist. According to the report, second quarter FDI inflows print came in at USD 351.8 mln, being lower than the expectations. Nevertheless, TBC Capital still expects investment activity to pick up on the back of moderating, but still strong GDP growth momentum when taking into account economic activity in the beginning of the year. In fact, such a dynamics is already evidenced in the second quarter investment imports data.
"Last week was noticeable as the GEL reversed back to an appreciation trajectory, in line with our judgment. Stronger GEL, together with declining commodity prices and the normalization in growth, are arguments for the monetary policy easing, though most likely, only by the end of the year. Therefore, while ruling out the hike, our best guess would be the stance to stay unchanged during the Wednesday NBG MPC meeting", - TBC Capital report reads.
