Revisions to the historical growth rates of the money aggregates - specifically M3 and Broad Money
- also reflect methodological improvements to their production.
On the inflation front, the new law also mandated the central bank to use a broader set of indicators than just outmoded aggregates (like broad money
supply in the financial system) as 'guiding principles in monetary administration.'
The World Bank data on the Broad Money
to GDP ratio shows that many economies, especially those with oil revenues, have a ratio of over 50% (Chart.
The MPS set growth ceilings of the private sector credit growth at 16.8 percent, domestic credit growth at 15.9 percent and broad money
at 12 percent respectively, while the public sector credit growth is 10.4 percent.
The meeting was told that broad money
(M2) witnessed a rise of Rs.35 billion from July 2018 to 16th November 2018 as compared to decrease of Rs.67 billion in the same period last year which is entirely contributed by Net Domestic Assets (NDA) of the banking system as Net Foreign Assets (NFA) continued to contract.
KUWAIT, Oct 11 (KUNA) -- Broad money
supply (M2) declined by 0.3 percent in August compared with July, recording KD 37.9 billion (USD 125 billion), according to the Central Bank of Kuwait (CBK).
The average annual growth rate for this broad money
metric has been 15.75 per cent since 2003.
The expansionary impact of net domestic assets (NDA) on broad money
supply has been partially neutralized by net contraction in foreign assets of the banking sector.
a negative impact of 5.4 percentage points on broad money
growth during FY18.
Going forward the opposing direction of NFA from its NDA counterpart can keep broad money
growth low in FY19.
As a result, broad money
supply saw a net expansion of 10.6 percent during FY18 as compared to 13.7 percent during FY17.