Commentary on monetary developments statistics

August 2026

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 rose to 6.0% in August 2026, representing a month-on-month increase of 0.3 percentage point. As a result of financial transactions, M3 rose by CZK 13.1 billion month on month (up by CZK 429.8 billion year on year), reaching CZK 7,614.7 billion.

Individual components of the annual rate of growth of M3 showed mixed developments in August. The contribution of currency in circulation remained flat for the fifth consecutive month (at 0.3 percentage point from March to August). The contribution of overnight deposits increased slightly (from 3.9 percentage points in July to 4.6 percentage points in August). By contrast, the contributions of other short-term deposits and short-term marketable instruments decreased very slightly, by 0.2 percentage point in both cases (specifically, the contribution of other short-term deposits fell from 0.6 percentage point in July to 0.4 percentage point in August, while the contribution of short-term marketable instruments decreased from 0.9 percentage point in July to 0.7 percentage point in August).

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, which are the most important counterpart of M3, increased marginally in August compared with the previous month, by 0.1 percentage points to 11.5%. As a result of financial transactions, the volume of these loans rose by CZK 48.4 billion month on month (an increase of CZK 496.0 billion year on year), amounting to CZK 4,816.4 billion. The annual growth rate of loans to non-financial corporations, a major component of this indicator, decreased slightly by 0.1 percentage points month on month to 13.2%. The annual growth rate of loans to households, which are the second key component, was unchanged at 10.3%.

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).