Higher Cur­rency in Cir­cu­la­tion Could Sig­nal Growth Re­vival: CS

The Economic Times - - Companies -

Mum­bai: Higher cur­rency in cir­cu­la­tion could be an early in­di­ca­tor of a pick-up in eco­nomic growth be­cause im­prove­ment in ba­sic in­fra­struc­ture such as ac­cess to elec­tric­ity, roads and phones has led to a re­vival in the in­for­mal econ­omy, es­pe­cially af­ter 2008-09, Credit Suisse said in a re­port on Mon­day.

Cur­rency in cir­cu­la­tion is money which is phys­i­cally used for trans­ac­tions be­tween con­sumers and busi­nesses. Data re­leased from RBI showed that cur­rency in cir­cu­la­tion has grown at 15.7% as of April 1. This rise has co­in­cided with a fall in de­posit growth, which in 2015-16 has slipped to a 53-year low of 9.9%. In a note, Credit Suisse an­a­lysts Neelka­nth Mishra, Prateek Singh and Ravi Shankar pointed out that the di­ver­gence be­tween cur­rency in cir­cu­la­tion and de­posit growth has oc­curred only thrice in the past two decades. — Joel Re­bello

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.