The European Central Bank’s report on the monetary developments in the
euro area revealed that the annual growth rate of broad monetary aggregate M3
accelerated to 3.4 per cent in October from an unrevised 3.2 per cent in September.
Economists had forecast M3 annual growth rate to quicken to 3.4 per cent in October.
Among the components of M3, the annual growth rate of narrower monetary
aggregate M1, comprising currency in circulation and overnight deposits, rose
to 0.2 per cent in October from -1.3 per cent in the previous month. The annual
growth rate of short-term deposits other than overnight deposits (M2-M1) declined
to 7.3 per cent from 9.6 per cent in September. In the meantime, the annual
growth rate of marketable instruments (M3-M2) fell to 20.0 per cent from 21.6
per cent in September.
The report also revealed that the annual growth rate of adjusted loans
to households increased to 0.8 per cent in October from 0.7 per cent in the
previous month, while the annual growth rate of adjusted loans to non-financial
corporations accelerated to 1.2 per cent from 1.1 per cent in September.