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.