is forcing the people to shift to savings in gold and real estate.
The BofA-ML economist said at 14.6 per cent, the time deposit growth is running way above demand deposit growth, which at 1.9 per cent.
"Had negative real rates been dissuading savings or savers shifting to gold or real estate as a hedge as inflation, we should expect households to break down fixed deposits to draw cash or write checks to buy property or gold. In reality, time deposit growth, at 14.6 per cent, has outstripped demand deposit growth (1.9%) or cash demand."
On the declining savings, which had dipped to 27.4 per cent as of the December quarter, he said over 60 per cent of this drop (which is only 10.8 per cent of GDP from a high 17.8 per cent in FY07) is driven by cyclical tightening by RBI to rein in inflation.