Commentary on monetary developments statistics

November 2025

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 recorded a moderate increase in November 2025 and reached 4.1%, representing a month-on-month rise of 0.3 percentage point. As a result of financial transactions, M3 also increased by CZK 35.6 billion month on month (an increase of CZK 290.0 billion year on year), amounting to CZK 7,264.4 billion.

Individual components of the annual rate of growth of M3 showed mixed developments in November. The contribution of currency in circulation remained flat at 0.2 percentage point, while the contribution of overnight deposits increased slightly (from 4.3 percentage points in October to 4.4 percentage points in November). The contribution of other short-term deposits also increased slightly but remained negative (from –1.8 percentage points in October to –1.5 percentage points in November). Conversely, the contribution of short-term marketable instruments declined marginally (from 1.0 percentage point in October to 0.9 percentage point in November).

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 to 8.2% in November, up by 0.9 percentage point compared with the previous month. As a result of financial transactions, the volume of loans to the private sector rose by CZK 57.0 billion month on month (an increase of CZK 340.1 billion year on year), with the total amounting to CZK 4,443.5 billion. The annual growth rate of loans to non-financial corporations, a major component of this indicator, rose by 2.0 percentage point month on month, reaching 6.7%. The annual growth rate of loans to households, which are the second key component, has been increasing slightly since May 2024. Compared to October, the rate rose by 0.2 percentage point to 8.5% in November 2025 (for comparison: it was 4.1% in April 2024).

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).