Euroarea money supply growth seems to have remained stable in November

Euro area’s money supply growth is likely to have remained stable in November. In the prior month, M3 growth had dropped to 4.4 percent year-on-year from 5.1 percent year-on-year in September. This fall was because of a sharp decline in medium-term deposits. According to a Societe Generale research report, the money supply growth rate is expected to have remained quite stable at around 4.3 percent year-on-year in November.

There are encouraging signs in growth in lending to the private sector that accelerated to 2.3 percent year-on-year in October from 1.6 percent in August and 2 percent in September. Adjusting for sales and securitization, loans to households were up by 1.8 percent year-on-year in October, while loans to companies were up 2.2 percent year-on-year.