M3 and loan growth slowed further in September on high base effect
Broad money (M3) supply growth moderated to an 11-month low in September (4.2% YoY; Aug: 4.7%). The slowdown reflects:
- A sharp dip in foreign currency deposits (2.9%; Aug: 8.2%), which hit a seven-month low and reducing its contribution to overall growth to 0.3 ppts (Aug: 0.9 ppts). This was further dragged by slower growth in saving deposits (3.2%; Aug: 4.0%), with its contribution edged down to 0.3 ppts (Aug: 0.4 ppts).
- MoM: rebounded (0.1%; Aug: -0.4%), adding RM3.1b
Slower M3 growth mainly due to lower government spending
- Net claims on government (9.9%; Aug: 13.4%): moderated sharply to a 14-month low due to slower growth in government claims (4.4%; Aug: 7.4%) and further declines in government deposits (-14.5%;Aug: -13.5%).
- Claims in the private sector (4.8%; Aug: 4.9%): slipped slightly to an 11-month low due to persistent weakness in securities (-2.0%; Aug: -0.9%). However, sustained loan growth (5.8%; Aug: 5.8%) partially offset the slowdown.
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