Commentary on monetary developments statistics

October 2025

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 recorded a modest decline in October 2025 and reached 3.8%, representing a month-on-month decrease of 0.5 percentage point. As a result of financial transactions, M3 increased by CZK 29.8 billion month on month (an increase of CZK 264.4 billion year on year), amounting to CZK 7,233.9 billion.

Individual components of the annual rate of growth of M3 showed mixed developments in October. By contrast, the contribution of currency in circulation was flat at 0.2 percentage point. The contribution of overnight deposits decreased slightly (from 5.2 percentage points in September to 4.3 percentage points in October) and the contribution of other marketable instruments also declined marginally (from 1.2 percentage point in September to 1.0 percentage point in October). By contrast, the contribution of other short-term deposits increased but remained negative (up from -2.3 percentage points in September to -1.8 percentage points in October).

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, increased to 7.3% in October, up by 0.1 percentage point from a month earlier. As a result of financial transactions, the volume of loans to the private sector rose by CZK 11.6 billion month on month and by CZK 301.6 billion year on year. The total volume of loans thus reached CZK 4,393.0 billion. The annual growth rate of loans to non-financial corporations, a major component of this indicator, saw a month-on-month decrease of 0.7 percentage point to 4.7%. The annual growth rate of loans to households, which are the second key component, has been growing slightly for a year and a half now. Compared to the previous month, the rate rose by 0.2 percentage point to 8.3% in October 2025 (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 ESA2010).