Commentary on monetary developments statistics

January 2026

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 recorded a moderate increase in January 2026 and reached 5.3%, representing a month-on-month rise of 0.7 percentage point. As a result of financial transactions, M3 also increased month on month, by CZK 48.0 billion (an increase of CZK 370.4 billion year on year), amounting to CZK 7,345.0 billion.

The individual components of the annual growth rate of M3 showed broadly similar developments in January 2026. The contribution of currency in circulation remained flat at 0.2 percentage point, while the contribution of overnight deposits increased slightly (from 4.2 percentage points in December 2025 to 4.8 percentage points in January 2026). The contribution of other short-term deposits also remained flat (-0.7 percentage point in both December 2025 and January 2026), as did the contribution of short-term marketable instruments, which has remained at 0.9 percentage point in the last three months.

Chart 1 – Contributions to annual M3 growth (%)
Contributions to annual M3 growth (%)

Source: ARAD data series system

The annual growth rate of loans to the private sector – the most important counterpart of M3 – increased by only 0.1 percentage point to 8.5% in January 2026 compared with the previous month. As a result of financial transactions, the volume of these loans rose by CZK 22.7 billion month on month (an increase of CZK 353.0 billion year on year), with the total amounting to CZK 4,501.3 billion. The annual growth rate of loans to non-financial corporations, a major component of this indicator, increased by 0.2 percentage point month on month to 6.9%. The second key component consists of loans to households, whose year-on-year growth rate has been gradually rising since May 2024; in January 2026 it also increased by 0.2 percentage point compared with December 2025, reaching 8.9% (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 ESA 2010).