According to the report from the European Central Bank (ECB), in August, the M3 monetary aggregate grew by 6.1% per annum after an increase by 5.7% per annum in July (revised from +5.5%). Economists had expected an increase by 5.4% per annum. Meanwhile, the growth of the narrower M1 aggregate, which includes money in circulation and overnight deposits, stabilized at 6.8% per annum. The annual growth rate of short-term deposits, except overnight deposits (M2-M1), accelerated to 4.6% from 3.3% in July.
Looking at the components' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 4.9% (as in the July), short-term deposits other than overnight deposits (M2-M1) contributed 1.0% (up from 0.7%) and marketable instruments (M3-M2) contributed 0.1% (up from 0.0%).
The data also showed that the volume of lending to the private sector increased by 4.5% per year after a similar increase in July. Consensus estimates also suggested growth by 4.5% per annum. Meanwhile, the annual growth rate of adjusted loans to non-financial corporations accelerated to 8.7% from 7.6% in July.