RBI Policy Is Liquidity Accretive Overall: Bhanu Baweja
  • Elizabeth George
  • Sep 23 2013

September 23: UBS’ Bhanu Baweja says RBI Governor Raghuram Rajan has always said India needs higher real interest rates to boost savings rates and support the CAD. So his move is consistent with this stand, he says, adding that the market reaction was a give back of excessive enthusiasm after Rajan’s first speech. “The governor has made it clear that if inflation expectations do not come off, repo rate will not come off,” he warns.