Indicators of monetary conditions change diversely in June
RUONIA declined in June, following the key rate cut. Market-based loan and deposit rates continued to go down in May.
Following the June key rate decision, market participants revised their expectations for the future monetary policy path. By the end of the month, money market rates and OFZ yields rose significantly, in particular for medium and long maturities, implying a tightening of the conditions in these segments.
Annual money supply growth accelerated in May. This was driven by high credit activity in the corporate segment, a revival in retail lending, and budgetary operations. According to preliminary data, annual M2 growth continued to speed up in June, while M2X growth remained near its May level.
More details are available in the Bank of Russia’s information and analytical commentary Monetary Conditions and Monetary Transmission.