MONEY AND BANKING- At Peace with IMF

At Peace with IMF MONEY STOCK and domestic credit expanded at rates much below those prescribed for the year under the understanding with the IMF. No definite trend was discernible in the movements of these variables during the year. M3 showed sharp increas is during June, December and March. Currency expansion was sizeable in November, February and March. Currency with the public had the predominant share in monetary expansion even as the yield rates on alternative financial assets were put up during the year. Accretions to deposits with commercial banks were larger than last year; the acceleration in deposit growth was marked towards the end of October 1982. In December 1982 deposits with banks rose sharply by Rs 2,600 crore, thereafter the growth was sluggish with a fall in January 1983. It is difficult to say unequivocaly whether the sharp rise witnessed was influenced by higher interest rates or by window- dressing.