MACRO ECONOMIC NEWS

Confidence Is The Assurance From The Nature

Wishing A Promising Day Ahead

 

Best Regards

Arbind

 

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Macro-Economic News 25 Feb 2021

 

Confidence is a key to growth – be it personal or economy. Fiscal and monetary policymakers are boosting confidence to various stakeholders – either by way of ‘helicopter money’ or ‘easy money’ or ‘quantitative easing’ and they must do. Optimism is important to the economy as it shapes our economic decision for the future. Assurance about the foreseeable future gives comfort and reduces risk (volatility) and in doing so policymakers assume some compassionate cushioning for caring for citizens.  

 

The unprecedented $9 trillion rescue mission by central banks to haul the world economy from its Covid recession is being tested. Finance ministers and central bankers from the Group of 20 will meet virtually Friday to set the tone for the next set of actions. European Union is considering giving the same rights to gig workers as their permanent staff.

 

Jerome Powell reaffirmed interest rates would stay low, calming market fears that higher inflation might prompt the central bank to tighten the monetary spigot. The dovish influence from the Fed is going to continue to resonate over in Asia. Powell reiterated the FED's promise to get the U.S. economy back to full employment and not worrying about inflation unless prices rose in a persistent and troubling way. Bank of England officials brushed aside suggestions that the economy is about to suffer from higher inflation anytime soon.

 

The Indian economy looks ready to leave a sharp downturn behind as business and consumer activity showed more signs of gathering momentum in January. Activities in the Indian dominant services sector expanded for a fourth straight month in January, with the pace of new work and business activity both quickening from a month ago. BCG finds that the Indian consumption market is likely to triple by 2030. Professionals are also confident about progress despite uncertainties. India is likely to harvest bumper wheat, mustard & chana crops in 2020-21.

 

British business and professional services firms have reported the biggest improvement in their outlook in more than five years but consumer services firms remain downbeat. The Confederation of British Industry said its measure of sentiment among business and professional services firms - such as property management and logistics firms - leapt to +23% in the three months to February from -21% in the previous three months, the strongest rise since August 2015.

 

Brazilian central bank will enjoy more autonomy free of political interference in fighting inflation or ensuring the stability of the financial system or smoothing fluctuations in the economic cycle or even promoting full employment. Undoubtedly it will foster business confidence. New Zealand’s government wants its central bank to take account of the housing market when it sets monetary policy, a change the bank opposed.

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