According to the report from the European Central Bank (ECB), in October, the M3 monetary aggregate grew by 5.1% per annum after an increase by 6.3% per annum in September. Economists had expected an increase by 6.2% per annum. Meanwhile, the growth of the narrower M1 aggregate, which includes money in circulation and overnight deposits, decreased to 3.8% per annum from 5.6% per annum. The annual growth rate of short-term deposits, except overnight deposits (M2-M1), accelerated to 9.9% from 8.1% in September.
Looking at the components' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 2.7% (compared to 4.1% in September), short-term deposits other than overnight deposits (M2-M1) contributed 2.2% (up from 1.8%) and marketable instruments (M3-M2) contributed 0.2% (compared to 0.4% in September).
The data also showed that the volume of lending to the private sector increased by 4.2% per year after a 4.4% per year increase in September. Consensus estimates suggested growth by 4.5% per annum. Meanwhile, the bank lending to eurozone companies held steady (+8.9% per annum), maintaining the sector's biggest borrowing binge since early 2009, despite rising interest rates and a looming recession.