Data published by the European Central Bank (ECB) showed that in May, broad monetary aggregate M3 grew by 5.6% per annum after an increase of 6.1% per annum in April (revised from +6.0%). Economists had expected growth to slow to 5.8% per annum. Over the past three months (from March to May), the average growth of aggregate M3 was 6% per annum.
Meanwhile, the growth of the narrower M1 aggregate, which includes money in circulation and overnight deposits, slowed to 7.8% per annum from 8.2% per annum in April, while the growth of short-term deposits, except overnight deposits, slowed to 0.3% per annum from 0.4% per annum.
The data also showed that the growth rate of deposits placed by households stabilized at 4.4% per annum, and the growth of deposits placed by non-financial corporations slowed to 6.4% per annum from 6.9% per annum. Meanwhile, the growth rate of deposits placed by non-monetary financial corporations (excluding insurance organizations and pension funds) slowed to 10.8% per annum from 12.3% per annum in April.
The ECB also reported that the volume of lending to the private sector increased by 4.6% per annum, as expected, after a similar increase in April, which was revised from +4.5%. Growth rate of adjusted loans to non-financial corporations increased to 5.8% per annum from 5.2% per annum in April.