Need Higher Rates Due To Inflation Risks: Bhanu Baweja
  • Elizabeth George
  • Sep 23 2013

September 23: UBS’ Bhanu Baweja says RBI Governor Raghuram Rajan will focus on the repo rate to bring down inflation expectations. He points out that Rajan’s statement says he will use the CPI to measure inflation expectations. “The CPI has been consistently higher than it should be and risks getting entrenched, which is why we need higher rates in this economy,” he adds.