Growth of credit to economy slows further in May
The annual growth of credit to the economy slowed down from 12.4% in April to 10.9% in May. Tight monetary conditions were limiting the expansion of lending. Over the month, banks’ claims on companies and households were up by 0.8% and 0.4%, respectively.
The decline in credit activity helped decelerate the increase in broad money – its monthly growth slowed down from 0.9% in April to 0.6% in May.
High deposit rates encouraged households’ savings. The inflow of individuals’ funds into banks was mostly accounted for by time ruble deposits.
More details are available in the new information and analytical commentary Credit to the Economy and Money Supply. It provides a brief comment on recent reporting data about lending and money supply dynamics, which characterise monetary conditions in the economy. The Bank of Russia will release the new material on a monthly basis.