Better of BS Opinion: India’s response to Covid, state of financial system, and extra

Decrease rates of interest and better liquidity have resulted in file issuance of company bonds, with Indian corporations elevating over Rs eight trillion from the bond market up to now within the present yr. Larger liquidity has decreased the unfold over authorities securities and lowered market rates of interest. Nonetheless, decrease rates of interest and extra liquidity within the system for an prolonged interval can create dangers. Former RBI deputy governor Viral Acharya has rightly argued that because the rates of interest spike, issuers can have issues. Cheaper credit score may additionally push up inflation.

On this context, as our lead editorial notes, the central financial institution would do properly to take such warnings significantly and keep away from a build-up of dangers within the monetary system.

Different items for the day discuss how India dealt with the Covid disaster, and the vaccine candidates.

The financial system up to now has vindicated the federal government’s strategy to minimising the influence of the pandemic, writes T T Ram Mohan

A profitable rollout of a vaccine in India will rely as a lot on proactive briefing of the general public by regulators as it should on proactive conferences with the builders, notes our second editorial.

Quote of the day

“We despatched a proposal to farmers. They wished that legal guidelines be repealed. We’re of the stand that the federal government is prepared for open-minded discussions on provisions they’ve an objection towards.”

Agriculture Minister Narendra Singh Tomar

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