According to the High Commission for Planning (HCP), the money supply is expected to increase by around 6.4% in 2024 before slowing to 5% in 2025.
The central bank’s cut in the key interest rate to 2.5% is expected to support the recovery of bank lending to the non-financial sector, especially thanks to a sharp increase in equipment loans in 2024, the HCP said in its forecast economic budget 2025.
Demands on the economy will continue to rise, with an increase of 6.2% in 2025 after an expected growth of 6.5% in 2024.
Deposit-taking institutions’ net claims on the central government are also expected to recover, increasing by 6.9% in 2025 from 4.8% in 2024, after declining by 4.7% in 2023 and 2.2% in the year 2025, after a sharp increase estimated at almost 17% in 2024.
