Growth of credit to economy slows further in June
Monthly growth of credit to the economy went down to 0.3% in June from 1.1% in May. Tight monetary conditions continued to limit the expansion of lending.
In June, corporate lending was the only driver of the entire growth of credit to the economy, while banks' claims on companies edged up by 0.4% month on month. Claims on households barely changed over the month.
Broad money increased by 0.6%, which is comparable to the May rates. Cash rubles and current accounts of households were the main contributors to the increase. This may be due to a greater need for funds for settlements during the summer holidays. In the segment of time deposits, long-term ones were growing faster, which may be associated with depositors’ desire to fix the current rates.
More details are available in the new information and analytical commentary Credit to the Economy and Money Supply.