Emerging markets to grow despite interest rate hikes: RBS

In an interview with CNBC-TV18, Emil Wolter, Head of Regional Asian Equity Strategist of RBS said, "Money is attracted to emerging markets for a combination of different reasons. The strength from the balance sheet that is, the level of indebtedness is much lower and the ongoing fiscal deficits are also much more containable."

"In the shorter run, emerging market Central Banks are more progressed in terms of basically, hiking interest rates. Growth is not going away in any emerging markets even with higher interest rates," he added. Below is the verbatim transcript of Wolter's interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying videos. Q: What do you think has led to this resurgence of interest in emerging markets after a two month hiatus over the last fortnight or so? A: All the time our impression was that there was actually nothing structurally wrong when emerging markets have had a very strong run in the aftermath of QE2. Also in the run up to QE2 and so some profits taken in consolidation was overdue. That consolidation is clearly behind us now and we are back to focusing on the medium-term fundamentals. Here it