Growth of eurozone money supply declines in March
The European Central Bank said yesterday that growth in the eurozone money supply declined in March from the previous month and that the rate of growth in loans to the private sector was sharply lower. Growth in the ECB's M3 indicator was 5.1 per cent,...
The European Central Bank said yesterday that growth in the eurozone money supply declined in March from the previous month and that the rate of growth in loans to the private sector was sharply lower. Growth in the ECB's M3 indicator was 5.1 per cent, down from a revised 5.8 per cent in February, a bank spokesman said. The money supply indicator measures cash, deposits and various other financial items. A falling figure points to lower demand in the economy, which normally means that inflation will ease and so allow the ECB to cut interest rates. These are currently at a benchmark level of 1.25 per cent.
On a three-month basis that smoothes out exceptional movements, M3 growth fell to 5.6 per cent in the period from January to March from a revised 6.4 per cent in the December-February period, the ECB spokesman said.
Growth in lending to the private sector compared with a year earlier fell sharply in March to 3.2 per cent from 4.3 per cent in February, he added.
On a three-month basis that smoothes out exceptional movements, M3 growth fell to 5.6 per cent in the period from January to March from a revised 6.4 per cent in the December-February period, the ECB spokesman said.
Growth in lending to the private sector compared with a year earlier fell sharply in March to 3.2 per cent from 4.3 per cent in February, he added.