Global outlook remains bleak; India's premium to the world will remain elevated: Neelkanth Mishra

economictimes.indiatimes.com:

Neelkanth Mishra, Chief Economist, Axis Bank, says “biggest risk right now is the global cost of capital, the risk-free rate, the US treasury yield is likely to spike up again when the world starts observing how bad the US fiscal condition is and also the after effects of the crowding out that the US government is doing which is driving significant dollar shortages in the rest of the world. So, the global outlook still looks pretty bleak to me.”


What is your view of the world?
You are forcing me to start with a negative comment. I am very worried about the world. I think the financial markets are ignoring some very meaningful risks. I am just hoping that we are able to navigate them and the regulators in the west are able to navigate them with some ease. So, the biggest risk right now is the global cost of capital, the risk-free rate, the US treasury yield is likely to spike up again when the world starts observing how bad the US fiscal condition is and also the after effects of the crowding out that the US government is doing which is driving significant dollar shortages in the rest of the world. So, the global outlook still looks pretty bleak to me.

Unlock Leadership Excellence with a Range of CXO Courses

Why are markets ignoring this obvious risk? The fact that government balance sheets are getting bloated and they will find it difficult to sustain this kind of a debt servicing level, interest rates are far higher than what they were three years ago. These are obvious concerns which perhaps are taught to you at a very