Commentary on monetary developments statistics

May 2024

Commentary on the main indicators

The annual rate of growth of M3 has recorded a slight decrease in every month of 2024 so far. The growth rate fell by 0.8 percentage point in January 2024 compared to the previous period (9.5% in December 2023). It dropped by 0.5 percentage point in February, by 1.4 percentage points in March and by 0.7 percentage point in April. In May, it declined by a further 0.4 percentage point to 5.7%. As a result of financial transactions, M3 increased by CZK 68.9 billion month on month in May 2024 (up by CZK 375.8 billion year on year), reaching CZK 6,908.4 billion.

Chart 1 – Contributions to annual M3 growth (%)
Contributions to annual M3 growth (%)

Source: ARAD data series system

The annual rate of growth of loans to the private sector, which are the most important counterpart of M3, increased by 0.5 percentage point to 5.1% in May 2024. The annual growth rate of loans to non-financial corporations, a major component of this indicator, also rose by 0.5 percentage point in May, to 6.0%. The annual growth rate of loans to households, another major component, recorded a similar trend. It grew by 0.2 percentage point to 4.3% in May.

Chart 2 – Contributions to annual growth in loans to private sector (%)
Contributions to annual growth in loans to private sector (%)

Source: ARAD data series system

Note:

  • Monetary aggregates comprise the monetary liabilities of monetary financial institutions to non-MFI Czech residents except central government. The narrow monetary aggregate M1 includes currency in circulation (excluding cash at banks’ cash desks) and overnight deposits. The intermediate monetary aggregate M2 comprises M1, deposits redeemable at notice of up to three months and deposits with a maturity of up to two years. The broad monetary aggregate M3 comprises M2, money market fund shares/units, debt securities with a maturity of up to two years and repurchase agreements.