ECB Reports Slowing Euro Area Liquidity Growth and Rising Corporate Deposits

The European Central Bank (ECB) has released its report on monetary developments in the euro area for June 2026, revealing a slowdown in liquidity growth and an increase in corporate deposits.

According to the report, the annual growth rate of the broad monetary aggregate M3 increased to 3.3% in June from 3.0% in May, averaging 3.0% in the three months up to June.

The components of M3 showed a decrease in the annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, to 3.4% in June from 3.7% in May.

However, the annual growth rate of marketable instruments (M3-M2) increased to 4.5% in June from 3.2% in May.