Commentary on monetary developments statistics

March 2024

Commentary on the main indicators

The annual rate of growth of M3 recorded a decrease in the first three months of 2024. 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 and by a further 1.4 percentage point in March to 6.8%. As a result of financial transactions, M3 decreased by CZK 28.4 billion month on month in March 2024 (up by CZK 428.7 billion year on year), reaching CZK 6,794.6 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 at 5.2% in March 2024. The annual growth rate of loans to non-financial corporations, a major component of this indicator, increased slightly in March, up by 0.2 percentage point to 6.2%. The annual growth rate of loans to households, another major component, has been fluctuating around 5% since June 2023. The same was true in March 2024, when the annual growth rate edged up by 0.1 percentage point compared to February to 5.1%.

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.