Commentary on monetary developments statistics

December 2025

Commentary on the main indicators

Compared to the previous month, the annual rate of growth of M3 recorded a moderate increase in December 2025 and reached 4.6%, representing a month-on-month rise of 0.5 percentage point. As a result of financial transactions, M3 also increased month on month, by CZK 31.0 billion (an increase of CZK 321.4 billion year on year), amounting to CZK 7,296.1 billion.

Individual components of the annual rate of growth of M3 showed mixed developments in December. The contribution of currency in circulation remained flat at 0.2 percentage point, while the contribution of overnight deposits decreased slightly (from 4.4 percentage points in November to 4.2 percentage points in December). The contribution of other short-term deposits also increased slightly but remained negative (from −1.5 percentage points in November to −0.7 percentage point in December), while the contribution of short-term marketable instruments was flat at 0.9 percentage point.

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 8.4% in December, up by 0.2 percentage point compared with the previous month. As a result of financial transactions, the volume of loans to the private sector rose by CZK 31.9 billion month on month (an increase of CZK 347.4 billion year on year), with the total amounting to CZK 4,476.1 billion. The annual growth rate of loans to non-financial corporations, a major component of this indicator, was unchanged month on month at 6.7%. The annual growth rate of loans to households, which are the second key component, has been increasing slightly since May 2024. Compared to November, the rate rose by 0.2 percentage point to 8.7% in December 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).