Avoid indulging in misadventures
As the market participants look forward to hearing Governor Das later this morning, it is pertinent to take note of a recent report by Moody’s Investors Service, cautioning about strengthening headwinds, tight funding conditions, and rising geopolitical threats for Asia Pacific region. The report emphasizes that “A downshift in China's economic growth rate and a cyclical slowdown in the US will weigh on Asia-Pacific (APAC)'s credit conditions in 2024. Peaking inflation globally will provide space for monetary tightening cycles to slow, but financial conditions will remain difficult for the weakest rated issuers. Meanwhile, geopolitical risks will continue to shape business decisions.” Interest rates: Moody’s does not expect central banks in the region to hike rates further. However, it believes that interest rates will remain elevated and decline only gradually. The possibility of occasional rate increases to guard against unexpected inflationary pressures is also not ruled ou...