Forex
Market on a hop, ignores liquidity signals
THE bond market continued with its rally behind easy liquidity (for most part of the fortnight) and expectations of a rate cut. Dr. Bimal Jalan's remarks that the economic conditions were favourable for a rate cut, only added fuel to the fire. Just when the market was looking like it was running out of steam owing to some profit taking and an impending Rs. 5,000-crores long bond issue, the Minister of State for Revenues made some remarks further hinting at a cut and that was it! Prices have not looked b ehind since.

US economy robust despite four rate hikes
LAST week, we reviewed the circumstances under which the US Federal Reserve tightened monetary policy earlier this month.

Budget to focus on fiscal tightening
FISCAL tightening is likely to be the focus of the Government when it unveils its annual budget statement for FY 2000/01 (year ending March 31) in two weeks. Over the past four years, the adverse combination of geo-political instability and economic slow down in varying degrees had led to a considerable deterioration in Central and State Government finances. Indeed, at a projected 10-10.5 per cent of GDP, India's cumulative public sector deficit is set to not only end FY 1999/00 at its highest level over the past decade, but also remain as one of the largest in the universe of emerging markets.

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