Commentary on monetary developments statistics

July 2026

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 declined to 5.7% in July 2026, representing a month-on-month decrease of 0.6 percentage point. As a result of financial transactions, M3 decreased by CZK 1.7 billion month on month but increased by CZK 409.4 billion year on year, reaching CZK 7,605.2 billion.

The individual components of the annual rate of growth of M3 showed mixed developments in July. The contribution of currency in circulation remained flat for the fourth consecutive month (at 0.3 percentage point from March to July). The contribution of overnight deposits decreased slightly (from 5.3 percentage points in June to 3.9 percentage points in July). By contrast, the contributions of other short-term deposits and short-term marketable instruments increased very slightly, by 0.4 percentage point in both cases (specifically, the contribution of other short-term deposits rose from 0.2 percentage point in June to 0.6 percentage point in July, while the contribution of short-term marketable instruments increased from 0.5 percentage point in June to 0.9 percentage point in July).

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 in July compared with the previous month, by 1.6 percentage points to 11.4%. As a result of financial transactions, the volume of these loans rose by CZK 36.9 billion month on month (an increase of CZK 490.4 billion year on year), amounting to CZK 4,772.0 billion. The annual growth rate of loans to non-financial corporations, a major component of this indicator, increased by 3.5 percentage points month on month to 13.3%. This is the highest value recorded since September 2022. The second key component is loans to households, whose year-on-year growth rate decreased marginally by 0.1 percentage point to 10.3%, ending the moderate upward trend that had persisted from May 2024 to June of this year.

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).