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Economic news
27.05.2022

Eurozone: the growth of the monetary aggregate M3 unexpectedly slowed down in April

Data published by the European Central Bank (ECB) showed that in April the broad monetary aggregate M3 grew by 6% per annum, which was weaker than the 6.3% increase in March. Economists had expected an increase of 6.3% per annum. The average growth of the monetary aggregate M3 over the past three months (from February to April) was 6.2% per annum. Meanwhile, the narrower aggregate M1, which includes cash in circulation and overnight deposits, grew by 8.2% per annum compared to +8.8% per annum in March.

The ECB reported that in April, the growth rate of deposits placed by the households slowed to 4.4% per annum compared to 4.6% per annum in March, while the growth rate of deposits placed by non-financial corporations accelerated to 6.9% per annum from 6.8% per annum. In addition, the growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) slowed to 12.5% per annum from 13.6% per annum in March.

The report also showed that the volume of lending to the private sector increased by 4.5% per annum in April, which corresponded to an increase in the previous month. Economists also expected an increase of 4.5% per annum. Meanwhile, the annual growth rate of adjusted loans to non-financial corporations increased to 5.2% from 4.1% in March.

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