MACRO ECONOMIC NEWS

Economy, Covid, Concern, and Everything is Growing;

Wishing A Week of Growing Hope

-Arbind

Macro-Economic News 18 Jan 2021

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There is a wall of global cash waiting to swoop in and buy, likely limiting the upside in yields, possibly having far-reaching implications from this looming appetite. ECB threatens banks with capital ‘add-ons’ over-leveraged loan risks, meanwhile, EU rules promise to reshape the opaque world of sustainable investment even though lockdowns fuel fears of a double-dip recession in the Eurozone.

The second wave of Coronavirus surges across various nations that would vex central bankers on five continents this week as they weigh the threat of more damage to growth against the hope that mass vaccinations will reopen economies. Officials are trying to gauge if another economic contraction is imminent. Most are likely to maintain current ultra-loose policy settings without committing to more easing as they keep a wary eye on the disease while crossing fingers on its eventual eradication.

Japan, Norway, and Ukraine are forecasted to keep rates unchanged, as are their colleagues in South Africa is projected for more easing to support the economy. Turkey’s central bank is expected to keep the nation’s benchmark interest rate at 17%. 

Start-ups found an opportunity in adversity during the pandemic catering to the diverse needs as India will launch a ‘Startup India Seed Fund’ with a ₹1,000-crore corpus to help start-ups get seed money for starting their ventures and help them grow.

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