Home » Business » Broad Money On Upward Trend

Annual growth in broad money has continued on an upward trend, rising to 12, 79 percent in October 2014, from 12,22 percent of the previous month. The increase in broad money was driven by increases across all deposit classes. On a monthly basis, broad money increased to $4,5 billion in October from $4,4 billion in September this year. Long term deposits registered the largest annual growth of 41,30 percent in October this year and over the same period, savings, demand, and short term deposits, recorded increases of 23,77 percent, 5,67 percent and 3,55 percent respectively

The growth in the deposit base was, however, not matched by a similar increase in domestic credit.

Annual growth in domestic credit remained largely unchanged at 6, 18 percent in the period under review.

On a month on-month basis, domestic credit grew by 1,50 percent to $4,3 billion in October from $4, 26 billion in September 2014

Long term deposits registered the largest annual growth of 41,30 percent in October 2014 while over the same period, savings, demand, and short term deposits, recorded increases of 23,77 percent, 5,67 percent and 3,55 percent, respectively.

Annual growth in credit to the private sector stood at 1,84 percent in October 2014, up from 0,93 percent in September 2014 . On a month-on-month basis, credit to the private sector recorded a growth of 0,96 percent to $3 788,45 million in October from $3 75,36 million in September this year.

During the month under review, loans and aances constituted 82,84 percent of the total credit to the private sector, followed by mortgages, 12, 75 percent, other investments, 1,95 percent ,bills discounted,1,43 percent and bankers’ acceptances at 1,03 percent.

Financing by banks was channelled to the agricultural sector through pre and post tobacco financing, 18,16 percent, manufacturing 14,94 percent, households 17,81 percent, mining 6,73 percent and construction, 2.15 percent. Loans and aances, however, remained short term in nature.

Net credit to Government registered a 57 percent annual growth during the period under review.

On a monthly basis, net credit to Government increased by 6,34 percent to $470,50 million in October2014 from $442,44 million in the previous month.

The value of transactions processed through the Real Time Gross System (RTGS) decreased five percent to $3,8 billion in October from $4 billion in September this year.

The volume of transactions registered an increase of one percent and the total value of card based transactions stood at $441,77 million in October up from $418,89 million in September 2014.

Source : The Herald

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