Low rates drive shift to physical assets: SBI Research

A low-interest rate environment in India during the pandemic caused a “paradigm shift” of household savings from financial to physical assets

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In its investigation, it discovered that 55% of the retail credit given to households in the previous two years went toward the purchase of homes, education, and vehicles. Arguments that household savings reached a 50-year low were deemed “completely misleading” by the report. It provided support for its claim by stating that household savings should not be considered in isolation but rather as a whole, including both physical and monetary saves.