Commentary on monetary developments statistics

September 2024

Commentary on the main indicators

As in the previous month, the annual rate of growth of M3 recorded a modest decline in September 2024, reaching 5.5%, representing a month-on-month decrease of 0.2 percentage point. As a result of financial transactions, M3 also decreased month on month in September 2024, down by CZK 19.4 billion (up by CZK 360.2 billion year on year), amounting to CZK 6,931.5 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 0.1 percentage point to 4.9% in September 2024. The annual growth rate of loans to non-financial corporations, a major component of this indicator, also rose, up by 0.6 percentage point month on month to 4.3%. The annual growth rate of loans to households, another major component, increased slightly for the fifth consecutive month. It rose by 0.2 percentage point to 5.1% in September.

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.