Indian, Brazilian firms most vulnerable to interest rate hikes: McKinsey

A 200 basis-point increase in interest rates could spark a sharp rise in the proportion of emerging market corporate debt issues at risk of default, with Brazilian and Indian firms most vulnerable, a report from McKinsey Global Institute showed. Following a decade of loose monetary policy and historically low-interest rates aimed at boosting economic growth after the 2008-9 financial crisis, global central banks including the U.

S. Federal Reserve and the European Central Bank are either raising interest rates or signalling an end to.

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