ECB Reports Strong Monetary Growth in July Despite M1 Slowdown

The European Central Bank (ECB) has released its latest monetary developments report for July 2026. The annual growth rate of broad monetary aggregate M3 stood at 3.4% in July, following a 3.3% increase in June. In contrast, the narrower monetary aggregate M1, which comprises currency in circulation and overnight deposits, saw its annual growth rate decrease to 3.1% in July from 3.5% in June.

Adjusted loans to households maintained an annual growth rate of 3.1% in July, while adjusted loans to non-financial corporations increased to 4.4% in the same month. This is a significant jump from the 4.0% recorded in June.