Broad money rises 12.6 percent as corporate lending accelerates

Corporate lending rose 2.5 percent month-on-month and 13.9 percent year-on-year to 102.8 trillion rubles, partly reflecting transaction-specific effects.

Total credit to the economy expanded 1.7 percent in July to 164.6 trillion rubles, lifting the annual growth rate to 10.6 percent from 9.9 percent in June.

In contrast, retail credit demand moderated, with claims on households rising 0.5 percent over the month to 41.3 trillion rubles compared to 0.9 percent in June.

Mortgage demand cooled following atypical activity in June, though annual retail claim growth reached 6.4 percent.

Banks also expanded holdings of corporate debt securities by 1.2 percent over the month to 8.9 trillion rubles.

Cash in circulation (M0) increased 2.9 percent in July to 20.4 trillion rubles, bringing its annual growth to 20.2 percent and its share in ruble broad money to 15.0 percent.

Household term deposits contracted 0.3 percent as funds moved into current accounts, though term deposits still represent around 70 percent of total household ruble savings.

Corporate ruble deposit growth slowed to 0.2 percent from 0.9 percent in June, while corporate foreign currency deposits slipped 0.2 percent.

Slower fiscal spending growth reduced the net contribution of government operations relative to June.