While the economy seems to be on a firm growth path, the fight against inflation is not over yet. Shaktikanta Das seems to be in no hurry. After playing well through a five-year Test match, he doesn't want to get out hit wicket, observes Tamal Bandyopadhyay.
Bank credit growth declined to 8.5 per cent in January from 13.5 per cent in the year-ago period.
The one-time restructuring of loans will help every firm and prevent cost-cutting measures such as lay-offs.
'At this time, staying in the game is more important.' 'If we do that, then wealth can be generated.'
ECB's long-term refinancing operations solves nothing.
Markets would be keenly looking for fiscal deficit & subsidy figures and borrowing and divestment program.
Industry body Association of Mutual Funds in India on Friday assured investors that a majority of fixed income mutual funds assets are invested in superior credit quality securities and such schemes have appropriate liquidity to ensure normal operations. The statement by the industry body came after Franklin Templeton Mutual Fund voluntarily decided to wind up its six debt schemes citing redemption pressure and lack of liquidity in bond markets due to the coronavirus pandemic.
'The assumed linear correlation between forced lower yields, higher bank borrowing from the RBI, higher lending, and higher growth involves leaps of faith, each a step on the quicksand of false beliefs,' warns Debashis Basu.
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