Monetary Activity Is Slowing Down in the rf
4/12/2025
Lending activity and the growth rate of monetary aggregates are declining in russia.
Among the reasons for the slowdown in monetary activity is the acceleration of inflation, which amounted to 10.24 % year-on-year in the first quarter.
The situation is also negatively affected by the high discount rate of the central bank of the rf, high inflation expectations of the population, banks’ stringent requirements to borrowers and unstable foreign economic situation.
At the same time, the growth of monetary aggregates – money supply M2 (all non-financial and financial funds, except for credit funds, of organizations and individuals residing in the rf, in rubles) and broad money supply M2X (M2 + deposits of residents of the rf in foreign currency) – slowed down in March.
The decline in monetary activity indicates the presence of crisis processes in the banking system and the ineffectiveness of the central bank’s monetary instruments. According to the forecast of the Foreign Intelligence Service of Ukraine, if the discount rate remains at 21 % or increases, the trend toward a slowdown in monetary activity in the rf will only intensify.
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