Monetary Policy Update

May 23, 2020

1:32 am

Repo Rate Cut by 40bps; Moratorium Extended The Reserve Bank of India (RBI) in an unscheduled monetary policy committee (MPC) meeting today reduced the policy repo rate by 40bps to 4%, the lowest in last two decades. The MPC judged that the risks to growth are acute, while the risks to inflation are likely to…

Read More

This Challenging World

May 18, 2020

10:03 am

• Unprecedented rise in government deficits and indebtedness globally • New Zealand announces a budget worth a staggering 17% of GDP • Global debt to GDP set to rise to 108% • Governments and central banks will have to be creative to keep the potential damage to bond markets in check • How far off…

Read More

V versus U

May 11, 2020

7:20 am

• The grind higher in US equities appears to back the V-shaped recovery view • A possible 25% unemployment rate would signal a U. • We should remain cognisant of the massive relief provided to households • Will households save or spend their ‘Trump’ cheques? … History suggests saving • Some US equities have seen…

Read More

Two Sides of a Coin

May 5, 2020

7:58 am

“The more things change, the more they remain the same”. Do they? We have been in the eye of a storm that has been threatening to change most things that touches our lives directly as well as indirectly. We have been exploring in the context of investment strategy as advisors, custodians and ‘fiduciarists’. Global macro…

Read More