March sa M3: +2.3% y/y
M3 sa 3-mo avg: +2.0% y/y
SA private loans: +2.5% y/y
MNI survey median:
March sa M3: +2.2% y/y
M3 sa 3-mo avg: +1.9% y/y
SA private loans: +2.7% y/y
MNI survey range:
February sa M3: +2.1% to +2.4% y/y
M3 sa 3-mo avg: +1.9% to +2.0% y/y
SA private loans: +2.7% to +3.3% y/y
February sa M3: +2.0% y/y
M3 sa 3-mo avg: +1.7% y/y
SA private loans: +2.6% y/y
—
FRANKFURT (MNI) – Eurozone M3 money supply growth accelerated
slightly more than generally expected in March and lending to the
private grew slightly slower than most analysts had forecast, seasonally
adjusted data from the European Central Bank showed Friday.
Standing at 2.3% in March, euro area money growth still remains
well below the ECB’s reference value of 4.5% that is seen to point to
price stability.
During his last press conference, ECB President Jean-Claude Trichet
observed that the “underlying pace of monetary expansion is gradually
picking up, but remains moderate.”
Nevertheless, the central bank is watching liquidity developments
with increasing attention as the economy recovers. Although the
expansion may still be benign, “monetary liquidity accumulated prior to
the period of financial market tensions remains ample and may facilitate
the accommodation of price pressures in the euro area,” it said.
Within M3, annual M1 growth accelerated to 3.0% from 2.9% in
February. Short-term deposits other than overnight deposits increased to
2.2% on the year after a 1.8% rise in February. Marketable instruments
were down -0.2% on the year after easing -0.3% in February.
Among the main counterparts of M3, annual growth of total credit
granted to euro area residents was +3.2% after +3.8% in February. Growth
of credit to governments decelerated notably but still remained strong
at 7.7% after +10.5%.
The annual growth rate of credit extended to the private sector
stood at 2.2% in March, compared with 2.3% in the previous month. Among
the components of the latter, the annual growth rate of loans to the
private sector stood at 2.5% in March, compared with 2.6% in the
previous month and falling slightly short of expectations.
Loans to non-financial corporations were up 0.8% year after a 0.6%
rise in February. On the month, loans rose by E3 billion after a E17
billion in February.
The ECB’s latest Bank Lending Survey, conducted between March 14
and March 31, showed that “euro area banks reported a notable increase
in the demand for loans” to business and expected “the demand for
corporate loans to continue to rise in the second quarter.”
By contrast, demand from households declined in the first quarter
of 2011 due to lower consumer confidence and a deterioration of housing
market prospects. Looking ahead, however, banks said that the prospects
for loan demand remain “broadly positive,” the report said.
Today’s release showed annual growth of loans to households on the
rise, firming to 3.4% in March from 3.0%. Lending for house purchases
was up 4.4% on the year after +3.8% in February. Consumer credit
declined by 0.9% in March after -0.7% in February, perhaps due to
slowing new car purchases.
— Frankfurt bureau: +49 69 720 142, email: frankfurt@marketnews.com —
[TOPICS: M$$EC$,M$X$$$,M$XDS$,MT$$$$]
