In July, the growth of credit to the economy in Russia increased to 1.1%, up from 0.5% in June, according to a recent release by the Bank of Russia. The report notes that retail lending remained weak and corporate lending was moderate, reflecting the impact of tight monetary conditions.
Corporate lending continued to be the main source of credit growth for the economy during July. Consumer borrowing increased only slightly, with most individuals focused on repaying existing loans rather than taking out new ones.
The supply of broad money grew by 0.8% in July, which is marginally higher than growth rates observed in May and June. This increase was mainly due to household ruble time deposits, as depositors sought to secure current high interest rates.
Additional information can be found in the Bank of Russia’s analytical commentary titled “Credit to the Economy and Money Supply.”
