Smile, And The World Starts Celebrating
Wishing A Rejoicing Friday Ahead
Best Regards
Arbind
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Macro-Economic News 26 Feb 2021
Patience is a virtue showing up in the solidly united
stand of policymakers in making any monetary policy adjustment while the market
is showing a little anxiety over the rising (Treasury) yields. The rise in
yields is being considered a sign of growing optimism in the strength of the
recovery. It does reflect a better outlook for economic growth and inflation
expectations which are closer to the inflation target.
Several Federal Reserve presidents argued that surging
Treasury yields reflect economic optimism for a solid recovery from the
Covid-19 crisis and stressed that the central bank has no plans to tighten
policy prematurely. While central bankers are showing no hurry of monetary
tightening, financial markets are in a little hurry in pricing in a rapid --
and perhaps too-hot – recovery.
Japan’s factory output shows resilience despite the
emergency. The output rises for the first time in three months, signaling the
country’s economic recovery, although its retail sales drop. Global trade roars
back from the depths of the pandemic. China and other Asian manufacturing
countries have grabbed a bigger slice of exports of everything from masks to
bikes— the market share they will likely keep after the public-health crisis
fades.
Moody’s and ICRA expect a stable outlook for Indian
corporates, while Moody’s presumes India’s fiscal position to remain weak.
Joblessness remains a bigger worry of urban Indians than Covid-19. The
disconnect between the market and the economy is voiced again, this time by
SEBI Chief; worsening of the disconnect has earlier been highlighted by RBI in
its Financial Stability Report (FSR) in Jan and by Shaktikanta Das, governor,
Reserve Bank of India in Aug 2020.
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