Eurozone M3 money supply growth sees sharp slowdown in Oct, hits 19-month low

Data released by the European Central Bank on Monday showed that Eurozone money supply expanded at a slower pace, while private sector credit growth improved in October. October Eurozone annual M3 money supply growth expanded at a slower pace climbed 4.4 percent year-on-year in October after rising 5.1 percent in September, averaging 4.8 percent in the three months up to October.

Annual growth in M1 also declined to 7.9 percent from 8.4 percent previously, while the annual increase in private loans came in at 1.8 percent, unchanged from the previous month. The annual rate of total credit growth however, increased to 4.2 percent from 3.9 percent previously.

It was the slowest pace of M3 gains since March 2015. The ECB targets a sustained expansion in money supply and private lending, a crucial component in the central bank's strategy to support growth conditions and boost inflation. The latest data will cause some unease within the ECB.

Details of the report showed annual growth in loans to households held steady at 1.8 percent. At the same time, loans to non-financial corporations gained 2.1 percent versus 2 percent increase in September.