Growth of credit to economy slightly accelerates in July
In July, monthly growth of credit to the economy went up to 1.1% from 0.5% in June. Due to tight monetary conditions, retail lending remained weak and corporate lending – moderate.
As in the previous month, corporate lending was the only driver of growth of credit to the economy in July. People were mainly repaying outstanding loans, increasing borrowings from banks at a modest pace.
Broad money edged up by 0.8% in July, which is slightly above the May—June rates. Household ruble time deposits contributed to the expansion of money supply somewhat more significantly. This was associated with depositors striving to lock in the high current interest rates.
More details are available in the information and analytical commentary Credit to the Economy and Money Supply.