Money stock keeps growing at ECB’s reference


Even if money supply growth in the eurozone slowed by 0.5% to 4.8% in August, credit to households increased by 1% to 1.4%. In particular, mortgage loans rose 1.6% compared to July.

Furthermore, credit to non-financial companies rebounded to 0.4% on a year-on-year basis.  AFI analysts point out that since March, money stock in the euro area has continued to grow over 4.5%, the European Central Bank’s benchmark level.

“This shows that the central bank’s balance expansion is allowing eurozone financial conditions to relax, an essential requirement for ensuring the economic recovery keeps moving,” AFI experts said.

Private lending and money supply growth are both measured by the ECB.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.