Best of BS Opinion: Financial market stress, policy after COVID-19 and more

Coronavirus has infected global sentiments sending markets and economies into a tailspin and nobody can predict the outcome with any certainty, imposing demands on governments like never before, say opinion writers. Kanika Datta sums up the views.

The global turmoil has drawn attention from the India-specific problems of a financial system short of capacity, effective interest rates that are still ahead of nominal GDP growth, and poor consumer and investment sentiment. The challenges could well be turned into opportunities now, says Neelkanth Mishra here

Tamal Bandyopadhyay says it’s time for the Reserve Bank of India to walk the talk. An out-of-turn policy rate cut should accompany assurance of  bond buying and the reopening of a short-term repo window for banks to borrow money. Read his analysis here

Last week’s market appeared to be “bipolar”, depressed one hour and euphoric the next, perfectly summing up human reactions to known unknowns when we overreact, says Debashis Basu, in his assessment of the bear market. Read it here

The government has taken some prudent steps to contain the fiscal deficit and the virus. It should continue to build capacity to treat infected people to help limit the economic downside, says the first edit here.

The government’s explanation for the Delhi riots in Parliament was disingenuous and raised more questions, says the second edit here 

QUOTE OF THE DAY

“SBI Chairman you will meet me in Delhi on this matter…. This is utter omission of job [sic]. I hold you completely responsible for a failure and I shall have a detailed talk with you”

Finance Minister Nirmala Sitharaman to SBI Chairman Rajnish Kumar on hearing that some 2,50,000 bank accounts of Assam tea garden workers were not functional


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