Flash: Indian crisis could worsen - Saxo Bank

FXstreet.com (Barcelona) - The conditions in India are set for a worsening of the confidence crisis, notes John Hardy, Saxo Bank's Head of FX Strategy. As noted by Hardy, the huge fiscal and trade deficit may lead the county to raise interest rates, which could result in a deeper recession. The main reason for the outflow of capital in countries like India says "it's part of a flow cycle that has been exacerbated by concern about the US Federal Reserve ending its bond buying programme." Hardy believes there are no quick fixes for India, which requires to take a 'tough medicine' which will likely lead to further economic headwinds.