Singh’s Top Aide Signals Need for Higher Interest Rates in India
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A top economic adviser to Indian Prime Minister Manmohan Singh signaled the need for higher interest rates before next week’s monetary policy decision as food inflation climbed to near a six-month high. Bonds fell.
“The fact that inflation is triggered by food inflation or supply side constraints doesn’t mean that the monetary policy doesn’t have a role to play,” Chakravarthy Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, told reporters in New Delhi today.