1. Synthesis
• The sustained dynamism of economic activity continued to drive the expansion of the private sector’s demand for money, both for transactional purposes and for savings. In this context, total means of payments (M2) reached an average balance of $229,480 million in October, presenting a monthly growth of 3.7% (28.1% YoY). Meanwhile, private means of payment (private M2) showed an increase of 2.7% (33% y.o.y.), registering increases in both demand and working capital deposits held by the public.
• Deposits belonging to the private sector continued their upward march, showing an increase of 2.9% (31.2% YoY). Demand loans increased by 3%, with increases of similar magnitude in savings bank and current account placements. Meanwhile, fixed-term deposits continued to increase, registering a growth of 2.8% ($2,200 million) in October, with increases in the wholesale and, mainly, retail segments.
• In October, bank liquidity (defined as the sum of cash in banks, the current account at the BCRA, net passes with the BCRA and the holding of LEBAC and NOBAC by entities) averaged 40.9% of total deposits in pesos in the month, 0.3 p.p. higher than that observed in September.
• Loans in pesos to the private sector showed an acceleration in their growth rate, favored by seasonal factors, mainly reflected in the increase in current account advances and credit card financing, although generalized increases were observed in all lines. Thus, they grew on average 4.4% ($6,385 million), registering a year-on-year variation of 30.6%, 3.9 p.p. more than that registered in September. Loans destined mainly to commercial activity doubled their monthly rate of change by increasing 5% ($2,930 million) in October, presenting similar increases among their main lines.
• During October, the most representative passive interest rates remained relatively stable. The interest rate paid by private financial institutions for deposits in pesos of up to 35 days and for more than $1 million (BADLAR) stood at 10.7%, increasing by 0.2 p.p. compared to the previous month. Meanwhile, the monthly average of the interest rate paid in the retail bracket (up to $100,000) remained around 9.1%.
• In general terms, the interest rates applied to loans in pesos did not show significant variations compared to September. In particular, among those collected for commercial loans, the average monthly interest rates of total current account advances and financing granted in the form of documents remained at the same levels as in September, 18.6% and 13.3%, respectively. The average monthly interest rate on personal loans also remained at the average level of September, standing at 29.5%.
• The stock of international reserves accumulated an increase of US$793 million (1.2%) in October, standing at US$51,918 million at the end of the month.
