According to the report from the European Central Bank (ECB), in March, the M3 monetary aggregate rose by 3.6% per year after increasing by 3.9% per year in February (revised from +4.0%). Economists had expected a 4.0% increase. It was the 16th increase in a row.
Meanwhile, the narrower M1 aggregate, which includes money in circulation and overnight deposits, grew by 3.8% per year, accelerating compared to February (+3.4%). The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 1.5% in March from 2.0% in February. The annual growth rate of marketable instruments (M3-M2) decreased to 11.3% from 18.0% in February.
Looking at the components' contributions to the annual growth rate of M3, the M1 contributed 2.4% (compared to 2.2% in February), short-term deposits other than overnight deposits (M2-M1) contributed 0.4% (compared to 0.6% in February) and marketable instruments (M3-M2) contributed 0.7% (compared to 1.1% in February).
The data also showed that the private loans rose by 1.7% per year after an increase of 1.5% in February. Economists expected an increase of 1.6% per annum. The latest increase was the strongest since June 2023. Lending to companies grew by 2.3% per year, accelerating compared to February (+2.2%), and confirming economists' forecasts.