August M3 and loan growth slowed as domestic demand takes a breather
Broad money (M3) growth moderated to a nine-month low in August (4.7% YoY; Jul: 5.3%)
- Weighed by a sharp moderation in foreign currency deposits (8.2%; Jul: 17.2%), hitting a six-month low, bringing its contribution to overall growth down to 0.9 ppts (Jul: 1.8 ppts). This was further dragged by slower growth in demand deposits (6.1%; Jul: 7.8%) with the contribution narrowed slightly to 1.2 ppts (Jul: 1.5 ppts).
- MoM: However, it fell for the third straight month (-0.4%; Jul: -0.1%), subtracting RM9.0b.
Slower broad money supply growth due to lower government and private spending
- Net claims on government (13.4%; Jul: 15.5%): moderated to a twomonth low due to slower growth in government claims (7.4%; Jul: 9.8%), and a sustained decline in government deposits (-13.5%; Jul:-11.2%).
- Claims in the private sector (4.9%; Jul: 5.1%): slowed to a 10-month low due to slower loans (5.8%; Jul: 6.0%) and securities fell (-0.9%;Jul: -0.8%) for the second straight month, and a 23-month low.
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