MACRO ECONOMIC NEWS

 Therefore We live for Today: Smile and Care

Wishing A Gentle Day Ahead

 

Best Regards

Arbind

 

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Macro-Economic News 20 Jan 2021

 

India may contribute to 15% of global growth by FY26; India’s Finance Minister Nirmala Sitharaman has described her upcoming budget as unlike anything seen in the last 100 years.

 

Yellen vows to take a hard line against currency manipulation and emphasizes she won’t seek a weaker Dollar. She also makes a case for a sweeping stimulus package while hedge fund industry assets surge to record $3.6tn.

 

IMF opines that Germany shouldn’t be afraid to bolster fiscal stimulus if the pandemic drags out the economic recovery. Eurozone banks scale back lending as bad-debt fears grow, while ECB is capping bond yields.

 

Central banks across Asia are starting the year juggling policy reviews and political pressure to do more to support their economies. Malaysia’s first interest-rate decision of the year is accomodating. In contrast, the Bank of Canada may refrain from adding new stimulus.

 

RBI flags that India’s troubled shadow banks face mounting challenges to a nascent recovery from the pandemic, with their asset quality set to deteriorate further. NPA swelled to the highest in at least five years, up 100 basis points from the year earlier, and the RBI forecasts it’s headed higher. Fitch Ratings said rating outlooks have turned negative for many NBFCs and that asset quality risks loom this year.

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