M3, deposit and loan growth slowed sharply in December on high base effect
Broad money (M3) growth slowed to a 15-month low (3.6% YoY; Nov: 4.0%)
- Reason: A high base effect weaker other deposits (-12.3%; Nov: - 1.0%) and dragged M3 growth by -1.2 ppts. Slower demand deposits (4.6%; Nov: 5.2%) and fixed deposits (4.6%; Nov: 4.8%), further reduced M3 growth by 0.2 ppts.
- MoM (1.4%; Nov: 0.7%): Jumped to a 12-month high, adding RM33.5b (Nov: RM16.7b).
- 2024: RM86.4b (2023: RM136.4b): Lowest in four years.
Lower M3 growth is also due to slower net claims on government and private sector but partially offset by higher foreign assets
- Net claims on government (3.6%; Nov: 5.3%): Fell for the fifth straight month to a 41-month low as deposits stagnant (0.0%; Nov: 8.0%), and claims (3.0%; Nov: 5.8%) slowed.
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