Commentary on monetary developments statistics

May 2026

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 declined slightly to 5.3% in May 2026, representing a month-on-month decrease of 0.8 percentage point. As a result of financial transactions, however, M3 increased by CZK 46.7 billion month on month (up by CZK 383.6 billion year on year), reaching CZK 7,570.7 billion.

Individual components of the annual rate of growth of M3 showed a similar and somewhat subdued pace in May. The contribution of currency in circulation remained flat (at 0.3 percentage point in March, April and May). The contribution of overnight deposits decreased slightly (from 5.1 percentage points in April to 4.5 percentage points in May), while the contribution of short-term deposits declined marginally (from 0.3 percentage point in April to 0.1 percentage point in May). The contribution of marketable instruments also remained flat (at 0.4 percentage point in April and May).

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, rose slightly in May compared with the previous month, by 0.2 percentage point to 9.5%. As a result of financial transactions, the volume of these loans rose by CZK 31.0 billion month on month (an increase of CZK 405.9 billion year on year), amounting to CZK 4,667.8 billion. The annual growth rate of loans to non-financial corporations, a major component of this indicator, also increased marginally, by 0.1 percentage point month on month to 8.2%. The second key component consists of loans to households; their year-on-year growth rate has been showing a slightly upward trend since May 2024. In May 2026 it increased by 0.2 percentage point compared with April, reaching 10.1% (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).