Claims on central government (annual growth as % of broad money)

This indicator quantifies the annual growth rate of loans provided to central government institutions, adjusted for their deposits, as a percentage of the broad money supply. It reflects the dynamic interplay between government borrowing and the overall liquidity in the economy. A rising percentage may signal increased reliance on domestic financing for government operations, which could impact monetary policy and inflation. Conversely, a decline may suggest fiscal tightening or a shift towards external financing. This measure is crucial for understanding how government fiscal activities influence monetary conditions, providing insights into economic stability, credit availability, and potential future economic growth trajectories. Monitoring these trends can help policymakers make informed decisions to balance growth with financial health. Source: