The annual growth of credit to the economy has slowed, decreasing from 12.4% in April to 10.9% in May. This deceleration is attributed to tight monetary conditions that have been limiting lending expansion. In May, banks’ claims on companies and households increased by 0.8% and 0.4%, respectively.
The reduction in credit activity contributed to a slower increase in broad money, with its monthly growth declining from 0.9% in April to 0.6% in May.
High deposit rates have encouraged household savings, leading to an inflow of individuals’ funds into banks, primarily through time ruble deposits.
Further information can be found in the new information and analytical commentary titled “Credit to the Economy and Money Supply.” It offers brief comments on recent data regarding lending and money supply dynamics, which reflect monetary conditions in the economy. The Bank of Russia plans to release this material monthly.
