High-frequency indicators show some tightening of monetary conditions in March
Market participants aligned their key rate path expectations with the decision of the Bank of Russia Board of Directors, dated 17 March 2023. This caused a decline in money and debt market yield curves. The movement had no significant impact on monetary conditions as household inflation expectations were down as well.
In February and March, key trends in the credit and deposit markets were the same as in the previous months. Households were building up their deposits still focusing on ruble-denominated accounts. Money supply was growing at a pace close to local highs. The contribution of fiscal operations to this growth continued to rise and became comparable with the contribution of lending. More details are available in the information and analytical commentary Monetary Conditions and Monetary Policy Transmission Mechanism.