KAI ZHONG YONG asked 5 months ago
Hi may I know what is the main reason CASA ratio increases when interest rate drops?
Is it because money flows back from FD/investments back into CASA since rates aren't that attractive anymore?
1 Answers
Rusmin Ang Staff answered 5 months ago
Hi Kai Zhong
Yes, fixed deposit often becomes less attractive. So people will rather keep cash on hand which will automatically push up the ratio.
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