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- Macroeconomic developments
Monetary multiplier continues to shrink in September.
submited on 03.11.2005 in category Monetary policy | Macroeconomic developments
submited on 03.11.2005 in category Monetary policy | Macroeconomic developments
Credit to private sector grew modestly in September by 2.2% to previous month (compared to August, 1.9%) and reached BGN 17,208 million. Both business and household credit expanded by similar volumes. At the same time the M3 aggregate only slightly grew by 0.4% to reflect a contraction in overnight deposits, to reach BGN 23,746 million. The monetary base however continued to increase at a steady pace by 2.1% to BGN 7,837 million. The monetary multiplier further shrank to 3.03.
Fiscal policy was neutral to restrictive, by slowly piling additional BGN 153 million to the fiscal reserve held at the BNB which reached BGN 4,458 million.
The coverage ratio of broad money (M3) with BNB external assets (or the assets of the ‘currency board’) grew significantly by 2.2% to reach 0.601, mostly due to slowdown of broad money aggregate.
Fiscal policy was neutral to restrictive, by slowly piling additional BGN 153 million to the fiscal reserve held at the BNB which reached BGN 4,458 million.
The coverage ratio of broad money (M3) with BNB external assets (or the assets of the ‘currency board’) grew significantly by 2.2% to reach 0.601, mostly due to slowdown of broad money aggregate.
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