Risks rising for emerging markets - RBI's Reddy

Y.V. Reddy, the governor of the Reserve Bank of India, has warned that new financial market players and instruments, as well as greater market integration, mean that the risk of contagion to emerging economies may have grown.

In a speech delivered in Argentina on 4 June, Reddy said that while growth in emerging market economies is strong due to structural reforms and sound macroeconomic policies, there were concerns over the sustainability of factors such as abundant global liquidity.

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