homeeconomy NewsIBLA 2021: Uday Kotak says will keep an eye on 'wolf of inflation', hope it doesn't come out in 2022 23
IBLA 2021: Uday Kotak says will keep an eye on 'wolf of inflation', hope it doesn't come out in 2022-23
Uday Kotak was awarded the marquee India Business Leader of the Year award at CNBC-TV18's 16th IBLA Awards 2021 on March 19
The Managing Director & CEO of Kotak Mahindra Bank, Uday Kotak, was awarded the India Business Leader of the Year award at CNBC-TV18's 16th India Business Leader Awards (IBLA) 2021 on March 19. The virtual event honoured high-achievers, outstanding leaders and true visionaries of corporate India and especially focused on those who made a difference in the year of the COVID-19 pandemic.
Kotak, who was honoured with the marquee award said that the 'cry wolf' story has been heard multiple times post 2020. He was speaking in context to inflation as investors expect it to rise higher as economic recovery gathers steam.
"If you look at the history post 2000s, we have heard the 'cry wolf' story very often. I still remember in 2008-09 huge amounts of money and liquidity were pumped in a post global financial crisis. I recollect economist telling us that the end result of so much liquidity and printing of money has to result in back-ended inflation. But I am still waiting in 2021 to figure out where that inflation is.
"The challenge with the cry wolf story is that you say cry wolf long enough and the wolf has not come, but at some point the wolf does come and I hope that the wolf does not come into 2022 or 2023 that is the point which I would watch very closely -- that is the wolf of inflation or significantly higher bond yields -- is that wolf around the corner in 2022 or 2023. Therefore I will keep one eye on that from a risk management point of view," he said.
The Kotak Mahindra Bank CMD added, "It
Kotak explained: "You can’t keep on endlessly printing paper and call it a valid currency and assume nothing happens forever. Therefore there is a deep concern and the size of stimulus and printing of money which is happening this time post pandemic is multiple times what happened post the financial crisis. Therefore, it is much larger and I would watch out for 2022 and 2023 this time more carefully because there is a chance that the wolf finally may appear when everybody has said forget the cry wolf story."
First Published: Mar 19, 2021 8:17 PM IST
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