IMA Analysis & Opinion Papersmore

Ongoing updates on critical business issues for peer group members

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  Executive Briefings Politics & Economy: China

  Sunday October 27, 2024

  Whilst the recent agreement to resume patrolling, along the Line of Actual Control, is a welcome step, it does not indicate a reset of relationships. The trust deficit will take a lot longer to amend. There have been several skirmishes on the border, fuelled by China’s creeping acquisition of disputed territory. Negotiations are painful, as they involve dozens of positions in high altitude terrains with both sides claiming ownership

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  Executive Briefings Politics And Economy: Fed Rates

  Wednesday October 16, 2024

  The impact of US monetary policy spreads across the entire global economic architecture. Fund flows to emerging markets are directly proportional to interest rate differentials. This is logical, as investors seeking higher returns, move funds out of the United States. More recently, the Reserve Bank of India defied market hopes, leaving interest rates unchanged. Logically, therefore, we should expect greater stability in the value of the rupee, as in the values of the other emerging market currencies. The half per cent point reduction now places the Fed fund rate to be between 4.75% and 5%. The shift in the Fed’s stance towards monetary easing, suggests that inflation is firmly under control, or so the central bank would like to believe

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