CNB Council: Strong growth in corporate loans continues

Published: 14/9/2022

At its session today, the CNB Council discussed current economic and financial developments and enacted several decisions on matters falling within its competence.

In the second quarter of 2022, strong growth in real economic activity continued on a quarterly basis, albeit at a somewhat slower pace than at the beginning of the year. However, the annual rate of real GDP growth accelerated due to the low level of economic activity in the same quarter of 2021. Favourable developments were largely supported by exceptionally good results in tourism, as well as by stronger growth in personal consumption. The GDP nowcasting model, mostly based on July data and therefore subject to risks, suggests that in the third quarter real economic activity might hold steady at the level from the previous three months, with the possibility of additional weakening of economic outlook towards the end of the year. The growth in employment in July and August relative to the average level from the previous quarter slowed down and the decrease in real wages continued in July. Consumer price inflation continued to accelerate, although at a more moderate pace than in the first half of the year, reaching 12.3% in July, due among other things to the decrease in the prices of refined petroleum products. The adjustment of monetary policy instruments in the process of joining the euro area raised the banks’ still ample kuna liquidity, thus offsetting the effects of the stricter global financing conditions on the increase in domestic interest rates. Strong growth in corporate loans continued in August, particularly in activities related to the production and distribution of energy. The increase in placements to households was slightly less pronounced, mostly in the housing loans segment.

The CNB Council approved the decision of the Supervisory Board of Wüstenrot stambena štedionica d.d. for the appointment of Rainer Hager as Member of the Management Board of the savings bank.