Russia's money supply, credit growth accelerate in May

Broad money supply (M2X) expanded by 1.2 percent month-on-month in May, with its annual growth rate accelerating to 13.1 percent from 12.5 percent in April.

This increase was primarily driven by a significant rise in ruble accounts and deposits of non-financial organizations, which grew by 3.7 percent month-on-month, compared to 0.4 percent in April.

The budget also supported money supply expansion.

Conversely, household deposits decreased amid lower interest rates and increased spending on tourism during the holiday season.

Despite this, the share of time deposits within household ruble deposits remained stable at 69.0 percent.

The M0 monetary aggregate's growth rate slowed to 2.0 percent from 3.3 percent in April, while the share of cash in M2 remained historically low at 14.5 percent.

While the monthly growth of credit to the economy decelerated slightly to 1.3 percent in May from 1.6 percent in April, its annual growth rate increased to 10.0 percent, up from 9.3 percent.

This monthly slowdown was mainly due to a reduced growth in claims on non-financial organizations, which eased to 1.5 percent from 2.0 percent.

Bank investments in corporate debt securities grew by 1.4 percent in May, up from 1.1 percent in April.

Lending to households accelerated significantly, rising by 0.7 percent month-on-month from 0.3 percent in April, pushing its annual growth rate to 4.8 percent.

This acceleration was largely driven by consumer and mortgage loans.