Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The annual rate of M3 broad money growth slowed to 7.6% in July from 8.3% in June, according to ECB data released on Thursday. Narrower M1, which comprises currency in circulation and overnight deposits, grew by 11.0% last month, down from 11.8% in June.
Non-financial business loans rose by an annual rate of 1.7% in July, slightly below 1.8% growth in June, but loans to households accelerated to a 4.2% pace in July from 4.0% the previous month.
While the ECB has presented a relaxed attitude toward rapid money growth — M3 peaked at just above 16% around the turn of the year — noting a "weakening of the line between monetary aggregates and inflation," eurozone HICP rose to 2.2% in August, exceeded the ECB's target. Despite the slowdown, M3 growth remains well above the 3.5%-to 6.0% range held through the five years ahead of the pandemic. However, some economists have highlighted the risk of rapid M3 growth in recent week, highlighting its continuing importance in the inflation chain.
Source: ECB
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.