Commentary on monetary developments statistics

January 2025

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 recorded a considerable decline in January 2025 and reached 4.2%, representing a month-on-month decrease of 2.9 percentage points. As a result of financial transactions, M3 decreased only marginally month on month in January 2025, down by CZK 1.0 billion (but increased by CZK 284.4 billion year on year), amounting to CZK 7,011.9 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, was unchanged from December 2024 at 5.5% in January 2025. The annual growth rate of loans to non-financial corporations, a major component of this indicator, saw a month-on-month increase of 0.2 percentage point to 3.9% in January 2025. The annual growth rate of loans to households, another major component, increased slightly for the ninth consecutive month (4.1% in April 2024). It rose by 0.1 percentage point to 6.2% in January 2025.

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.