Eurozone M3 Growth Rises; Loans To Private Sector Logs Steady Growth
Eurozone money supply increased at a faster pace in October and loans to the private sector recorded a steady growth, data released by the European Central Bank showed Thursday.
The monetary aggregate M3 expanded 10.5 percent on a yearly basis, slightly faster than the 10.4 percent rise posted in September.
At the same time, the annual rise in narrow measure, M1, remained unchanged at 13.8 percent in October.
As regards the dynamics of credit, data showed that annual growth in credit to the private sector held steady at 4.9 percent in October.
Adjusted loans to the private sector climbed 4.6 percent, the same rate as seen in September.
Loans to households posted a stable growth of 3.1 percent. Meanwhile, growth in loans to non-financial corporations eased to 6.8 percent from 7.1 percent in the previous month.
Significant uncertainty around the economic outlook continues to keep non-financial corporate bank lending subdued, Bert Colijn, an ING economist, said. That also reflects an absence of emergency liquidity borrowing like in the first wave, but it may be too soon to tell, the economist added.