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Positive Real Interest Rates to Stimulate Financial<br />
Savings<br />
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• Earlier, negative real rates fueled inflation in physical assets as people chased assets such as real estate and gold till 2014.<br />
• This can lead to healthy banks deposits and therefore lending to the formal sector<br />
Note: <strong>Monthly</strong> 10 year Gilt Yield taken as average of their respective month. Sept <strong>2018</strong> CPI is assumed to be same as Aug-18 and Real Interest rate is calculated . Source: Bloomberg<br />
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