Euro Area Money Supply Growth Accelerates as Lending Remains Steady

The European Central Bank (ECB) has reported that euro area money supply growth accelerated in June, while lending to households and businesses remained steady. According to the ECB, the annual growth rate of the broad monetary aggregate M3 increased to 3.3 per cent in June, up from 3.0 per cent in May.

The three-month average growth rate of M3 stood at 3.0 per cent, covering the period up to June. The increase in M3 growth was supported by stronger growth in short-term deposits and marketable instruments, despite slower expansion in the narrower monetary measure M1.

Claims on the private sector remained the largest contributor to money supply growth, contributing 3.1 percentage points to annual M3 growth in June. Total claims on euro area residents grew at an annual rate of 2.4 per cent in June, unchanged from the previous month.