RBI to Release M3 Money Supply Data for December 2024

RBI to Release M3 Money Supply Data for December 2024

The Reserve Bank of India will report its M3 Money Supply for December 2024 on December 25 at 10:30 AM GMT. The consensus for this year's year-over-year growth rate is 10.1%, slightly higher than the prior rate of 10.0%. This indicator measures the percent change in total money supply circulating in the Indian economy compared to the same month a year earlier.

If the forecast is met or exceeded, that would mean a strong expansion in monetary availability that could signal improved liquidity and economic growth. In this regard, analysts believe a probable rise in consumer spending and investment boosts economic activities. Furthermore, upward growth in M3 may be a case of a surge in inflationary pressures too since increased supply of money has the tendency to lift the level of prices.

On the other hand, in case the actual numbers fall below the forecast, such an indication could be regarded as one of monetary contraction and hence weakened economic momentum. Although these may keep at bay the inflationary trends, they may also indicate a subdued growth in income levels and demands.

This should have implications for the INR—stronger-than-expected M3 growth is likely to keep the currency well-supported due to the prospect of economic expansion, while weaker data would do the opposite. For a read on future economic performance, investors and policymakers alike are going to pay close attention to the release.