(Finance) – The growth of the M3 money supply in the Eurozone in February is slowing down as expected. The annualized growth rate of the M3 aggregate, as recorded monthly by the European Central Bank (ECB)stood at 6.3% from 6.4% the previous month, in line with analysts’ expectations.
L’aggregate M1made up mostly of coin and 1-day deposits, is down to 9% from 9.1% in January.
The growth of loans to the private sectorin particular loans to households, strengthened to 4.4% (as in January), while that of non-financial business loans it stood at 4.4% from the previous 4.3%.
The money supply M3 is a broad indicator that includes two other indicators, M1 and M2. The first consists of circulating money and sight deposits. The second is the sum of M1 and fixed-term deposits. By adding to M2 the repurchase agreements, money market securities and those with a maturity of up to two years, we obtain the M3 aggregate, the first pillar of the ECB’s monetary policy.