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Muddling Through COVID-19 crisis

Apr 6, 2020

11:26 am

Nobel Laureate Esther Duflo a couple of days ago said that uncertainties are giving rise to uncertainties. That statement best sums up the economic environment we are in currently. Is Covid19 one quarter or a one year problem? Will we have an extended lockdown or is the end in sight? Or is a shut-start-shut the…

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Delusional

Mar 30, 2020

10:17 am

• Despite last week’s rally in the equity market we see risks substantially to the downside • Remember that COVID-19 has only laid bare the problems of the global economy • We see no quick and easy way out of the challenges facing the markets • Listen to the medical specialists – the virus will…

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Monetary Policy Update

Mar 27, 2020

8:34 am

RBI Unveils Many Arms from Its Arsenal ‘Whatever it takes’ was given a whole new meaning today by the Reserve Bank of India (RBI). It fired from every barrel to support the economy in its fight against slowdown triggered by the Covid19 pandemic. Interest Rates: The repo rate was slashed by 75 bps to 4.40%…

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Broad Panic – But Finally Meaningful Policy Action

Mar 23, 2020

10:21 am

• Market panic in full flow • However, policymakers are well engaged and starting to deliver scale intervention • Economists at a loss to understand the true scale of the likely recession • Fear of massive deleveraging particularly amongst corporates • Policymakers need to work hard to mitigate mass unemployment • Bonds are better supported…

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