Commentary on monetary developments statistics

March 2025

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 recorded a moderate increase in March 2025 and reached 4.5%, representing a month-on-month rise of 0.5 percentage point. As a result of financial transactions, M3 also increased, by CZK 8.3 billion month on month (up by CZK 308.2 billion year on year), reaching CZK 7,094.7 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 only 0.1 percentage point to 6.1% in March compared with the previous month. As a result of financial transactions, loans to the private sector increased by CZK 37.0 billion month on month (up by CZK 245.9 billion year on year), reaching CZK 4,238.8 billion. The annual growth rate of loans to non-financial corporations, a major component of this indicator, saw a month-on-month decrease of 0.2 percentage point to 4.4% in March. The annual growth rate of loans to households, another major component, increased slightly for the eleventh consecutive month (4.1% in April 2024). Compared to the previous month, it rose by 0.3 percentage point to 6.6% in March 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.

  • The private sector comprises all resident institutional sectors except general government (S.13) and monetary financial institutions (S.121, S.122 and S.123 under ESA2010).