Aberdeen’s Leong Sees Opportunities in India’s On-Shore Credit Spreads Market

The video discusses the Reserve Bank of India's (RBI) current concerns, focusing on inflation and rising oil prices. It explores the likelihood of interest rate cuts and market expectations, highlighting the RBI's cautious approach due to geopolitical events. The video also examines the challenges faced by the Indian bond market, including high currency circulation and bond supply risks, while identifying opportunities in onshore credit spreads.

What is the primary driver of headline inflation in India at the moment?

• Geopolitical events

• Oil prices

• Food prices

• Core inflation

What is the RBI's stance on another rate cut given the current market conditions?

• They are likely to cut rates

• They have already cut rates

• They are increasing rates

• They are unlikely to cut rates

What alternative measure has the RBI committed to instead of cutting rates?

• Reducing bond supply

• Increasing liquidity surplus

• Decreasing liquidity surplus

• Raising interest rates

What is one of the reasons for high currency circulation in India currently?

• Bond supply risks

• General elections

• Core inflation

• Rising oil prices

Where does the market see potential opportunities despite current challenges?

• Increased bond supply

• Onshore credit spreads market

• Currency exchange rates

• Foreign investments