Growth of credit to economy slows in September
In September, credit to the economy increased by 0.7% compared to 1.8% in August. The slowdown was due to the fact that organisations were making accrued interest payments at the end of the quarter. Retail lending also slowed. Its growth was mainly driven by mortgages.
More moderate lending dynamics led to a slowdown in money supply growth, despite some support from fiscal operations. As of the end of September, broad money (M2X) was up by 0.6% compared to 1.4% in August.
The amount of cash in circulation grew slightly in September, with its share in money supply remaining near historical lows. The contribution of ruble deposits of households and organisations to money supply growth decreased. Nevertheless, organisations’ funds in foreign currency time deposits increased. As a result, ruble money supply (M2) contracted in September, while the M2X aggregate, which includes foreign currency deposits, demonstrated positive dynamics.