Piecing together disparate data for economic and market insights
Continuing fiscal laxity in the US means monetary policy must do more of the inflation fighting, increasing risks of financial accidents Neelkanth Mishra | Last Updated : May 08 2023 | 10:16 PM IST This appeared in the Business Standard on 9 May 2023 (link). Volatility in stock prices of US banks has persisted, even … Read more
Recent evidence of a sharp slowdown in house construction in major markets poses downside risks to global growthNeelkanth Mishra | Apr 10 2023 | 10:31 PM IST This appeared in the Business Standard on April 11, 2023 (link). An important and potent channel of monetary policy transmission is the housing market. Weakness in housing demand … Read more
Growth downturns can expose vulnerabilities that increase market risks Neelkanth Mishra | July 4, 2022 22:44 IST This appeared in the Business Standard on July 5, 2022 (link). There are two drivers of market downturns: Cuts to forward earnings estimates and a decline in the price-to-earnings (P/E) multiple that investors ascribe to them. A 15 … Read more
New MPC’s unambiguous messaging on inflation should help buyers of government bonds take the riskWritten by Neelkanth Mishra | Updated: October 12, 2020 8:53:54 am (This was published in the Indian Express: link) The economy is rebounding faster than earlier expected, and year-on-year comparisons, only partly helped by the economic weakness seen in the second … Read more
How fiscal pressures on state budgets are more pro-cyclical and weak imports push up bond yieldsNeelkanth Mishra | Last Updated at December 4, 2019 01:00 IST (This was published in the Business Standard: link) Economies are complex systems, with inter-linkages that usually do not get adequate attention, but which can have a strong effect on … Read more
If the real repo rate, the term premium and credit spread were to normalise, borrowing rates could fall by more than 2 percentage pointsNeelkanth Mishra | Last Updated at April 30, 2019 21:37 IST (This was published in the Business Standard: link) Are we saving enough? Like it is for households, the question is an … Read more
The constraints in the financial system have further worsened the monetary tightness. As growth continues to slow and inflation stays below the target, interest rates may keep falling, but likely not fast enough to revive growth quickly.Written by Neelkanth Mishra | Updated: April 17, 2019 7:38:21 am (This was published in the Indian Express: link) … Read more
Economic growth solves many problems. Can lower interest rates help reverse the slowdown?Neelkanth Mishra | Last Updated at March 6, 2019 01:08 IST (This was published in the Business Standard: link) Debatable as the analytical utility of quarterly GDP statistics in India may be, the continuing drop in growth rates as recently reported for the … Read more
RBI raising limits for foreign investors holding government bonds is more significant than the rate cut.Written by Neelkanth Mishra | Updated: October 2, 2015 12:25:15 am (This was published in the Indian Express: link) So finally it’s done: the RBI cut rates. With inflation steadily printing lower, taking real interest rates to near record highs, … Read more
Written by Neelkanth Mishra | Updated: Jul 31 2013, 11:06am hrs (This was published in the Financial Express: link) There is a perceptible fear among investors and corporates that the Reserve Bank of Indias recent tightening of liquidity to protect the currency is a precursor to a prolonged period of high interest rates. To assess … Read more