The latest Fed minutes showed officials concluded they would start raising rates soon and were on alert for persistent inflation that would justify faster tightening. There were few new details on balance-sheet runoff plans
Bad bank to ease stress, aid credit offtake: RBI bulletin
The formation of a bad bank in India is likely to help reduce stress in the banking system and provide an impetus to the credit cycle, according to an article in Reserve Bank of India’s (RBI) February bulletin.
Cross-country evidence suggests that if the logistical and financial challenges are carefully navigated, experiments of such bad banks can have more hits than misses, RBI said. Some experts have hailed the formation of the National Asset Reconstruction Co. Ltd (NARCL) as a panacea for all ills, while others pointed out the existence of multiple avenues of stressed asset resolution and their challenges, it said.
The article draws lessons from other nations where bad banks were set up to predict if NARCL would succeed. (Read here)
‘Hazardous’ vehicles to get tracking system: Govt
The government plans to make it mandatory for all vehicles carrying hazardous goods to install approved vehicle tracking devices to ensure road safety.
The ministry of road transport and highways issued a draft notification that vehicles carrying gases, such as argon, nitrogen and oxygen and other dangerous goods, will have to be fitted with the tracking systems. The ministry has invited comments from stakeholders within 30 days, after which a formal notification about the changes will be issued.
Currently, only vehicles with national permits are required to fit tracking systems for carrying hazardous items.
The transport ministry, vide draft notification dated 15 February, has proposed that every goods vehicle carrying any dangerous or hazardous goods shall be equipped with or fitted with a vehicle tracking device as per Automotive Industry Standard (AIS) 140.
SGX Nifty futures trade higher
Nifty futures on the Singapore Exchange were up 48 points at 17,365 in early deals, hinting at positive start for Indian indices.
Asian stocks mixed; Ukraine crisis, Fed tightening in focus
U.S. equity futures fell and Asian stocks were mixed Thursday as traders weighed geopolitical concerns and the likely path for Federal Reserve interest-rate increases.
Shares slipped in Japan, jumped in South Korea and fluctuated in Hong Kong, where reports suggest authorities are preparing mass testing to fight Covid. U.S. contracts dipped after the S&P 500 managed a small gain Wednesday.
Traders were digesting the U.S. rejection of Russia’s claims of a troop pullback from Ukraine’s border. The Kremlin has repeatedly denied any plans to invade.
The latest Fed minutes showed officials concluded they would start raising rates soon and were on alert for persistent inflation that would justify faster tightening. There were few new details on balance-sheet runoff plans.
Investors expect at least 150 basis points of Fed tightening in 2022–up from 75 basis points just a few weeks ago–to fight price pressures.
Japan’s Topix index fell 0.6%, Australia’s S&P/ASX 200 Index climbed 0.6%, South Korea’s Kospi rose 1.2%, Hong Kong’s Hang Seng added 0.2%, and China’s Shanghai Composite fell 0.1%
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