Euro Area Sees Slowing Liquidity Growth, Rising Corporate Deposits in June

The European Central Bank has released its report on monetary developments in the euro area for June 2026. The data shows that the annual growth rate of the broad monetary aggregate M3 increased to 3.3% from 3.0% in May, averaging 3.0% over the previous three months.

The components of M3 had varying levels of growth. M1, which comprises currency in circulation and overnight deposits, saw its annual growth rate decrease to 3.4% in June from 3.7% in May. In contrast, marketable instruments (M3-M2) experienced a significant increase in their annual growth rate to 4.5% in June from 3.2% in May.

The growth rates of deposits placed by different sectors were also notable. Deposits placed by non-financial corporations increased to 5.3% in June from 4.2% in May, while deposits placed by households decreased to 2.6% in June from 2.8% in May.

The annual growth rate of total claims on euro area residents remained unchanged at 2.4% in June. Claims on the general government saw a slight increase in their annual growth rate to 0.3% in June, while claims on the private sector stayed at 3.3%. Adjusted loans to the private sector also remained unchanged at 3.9%, with non-financial corporations experiencing a growth rate of 4.0% and households seeing a rate of 3.0%.