Commentary on monetary developments statistics
August 2024
Commentary on the main indicators
The annual rate of growth of M3 recorded a modest decline in August 2024 compared to the previous month, reaching 5.7%, representing a month-on-month decrease of 0.3 percentage point. As a result of financial transactions, M3 also decreased month on month in August 2024, down by CZK 22.6 billion (up by CZK 375.3 billion year on year), amounting to CZK 6,948.3 billion.
Chart 1 – 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 by 0.4 percentage point to 4.8% in August 2024. The annual growth rate of loans to non-financial corporations, a major component of this indicator, also rose by 0.4 percentage point month on month, reaching 3.7%. The annual growth rate of loans to households, another major component, increased slightly for the fourth consecutive month. It rose by 0.1 percentage point to 4.9% in August.
Chart 2 – Contributions to annual growth in loans to private sector (%)
Source: ARAD data series system
Note:
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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.