Link Securities | The European Central Bank (ECB) has reported that the M3 money supply expanded in the Eurozone at an annual rate of 3.3% in June (3.9% in May), slightly less than the 3.5% expected by FactSet consensus analysts. In addition, the ECB noted that bank loans to households in the Eurozone increased by 2.2% year-on-year in June (2.0% in May), representing the fastest pace of growth for this variable since May 2023.
This increase reflects a continued recovery in credit demand, driven by the recent easing of the ECB’s monetary policy.
Similarly, loans to companies increased by 2.7% year-on-year in June (2.5% in May). As a result, overall credit growth to the private sector, which includes both households and non-financial companies, increased by 3.0% year-on-year in June (2.8% in May).
