Commentary on monetary developments statistics

February 2024

Commentary on the main indicators

The annual rate of growth of M3 recorded a slight decrease in the first two months of 2024. It fell by 0.8 percentage point in January 2024 compared to the previous period (9.5% in December 2023), and in February it decreased by a further 0.5 percentage point to 8.2%. As a result of financial transactions, M3 rose by CZK 97.3 billion month on month in February 2024 (up by CZK 512.6 billion year on year), reaching CZK 6,824.1 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, stood at 5.2% in February 2024 (down by 0.1 percentage points month on month). The annual growth rate of loans to non-financial corporations, a major component of this indicator, also declined slightly in February, down by 0.2 percentage points to 5.4%. The annual growth rate of loans to households, another major component, has been fluctuating around 5% since June 2023. The same was true in February 2024, when the annual growth rate was flat at 5%. 

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.