In September, credit to the economy in Russia grew by 0.7%, a slowdown compared to the 1.8% increase recorded in August. The deceleration was attributed to organizations making accrued interest payments at the end of the quarter. Retail lending also experienced a slowdown, with most of its growth coming from mortgages.
The more moderate pace of lending led to slower money supply growth, even though fiscal operations provided some support. By the end of September, broad money (M2X) increased by 0.6%, down from 1.4% in August.
Cash in circulation grew slightly during September, but its share within the overall money supply remained close to historical lows. The contribution of ruble deposits from households and organizations to money supply growth decreased over the month. However, funds held by organizations in foreign currency time deposits rose. As a result, ruble money supply (M2) contracted in September, while the broader M2X aggregate—which includes foreign currency deposits—showed positive dynamics.
