Euro-area money supply growth holds steady at 3.5%

Euro-area money supply growth held steady in September, while the annual growth of loans to households and businesses also remained unchanged, according to European Central Bank figures published on 27 October.

The ECB said broad money supply, known as M3, grew by 3.5% year on year, the same rate as in August. Adjusted lending to households rose by 3.1% and to non-financial companies by 4.2%, also unchanged from the previous month.

Growth in the narrower M1 measure, which includes cash in circulation and overnight deposits, eased to 2.7% from 2.9%. Meanwhile, short-term deposits other than overnight deposits grew faster, at 4.6%, up from 4.1%.