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Money Supply and Credit April 2026: M3 and credit growth accelerate faster than expected in April.
- Growth in broad money supply (M3) quickened from 9% in March to 9.8% in April, higher than our and the market’s forecasts.
- Private sector credit extension (PSCE) also accelerated from 8.5% to 9.2%, against our and the market’s forecasts of moderation to 6% and 6.8%, respectively.
- Growth in loans and advances increased, with both corporate and household credit accelerating.
- We expect credit growth to hold up reasonably well, but the rate of increase will likely moderate as the base effect eases. The Iran war and its adverse consequences will likely subdue business confidence and dampen corporate credit. The previous rate cuts are still expected to sustain the gradual recovery in household credit, even though high fuel costs and moderate interest rate hikes will partly contain growth in spending and credit demand.