Euro Area Monetary Developments

Data Macro

Source: European Central Bank
Source Link: https://www.ecb.europa.eu/
Frequency: Monthly
Next Release(s): January 29th, 2026 4:00 AM

Latest Updates

Euro area M3 growth rose to 3.0% YoY in November (from 2.8% in October), reflecting firmer broad money expansion driven by stronger credit contributions.
- The annual growth rate of M3 increased to 3.0% YoY from 2.8% YoY, averaging 2.9% over the three months to November, indicating a modest acceleration in broad liquidity.
- M1 growth slowed to 5.0% YoY (Oct: 5.2%), reducing its contribution to M3 growth to 3.2 ppts from 3.3 ppts, signaling softer momentum in currency and overnight deposits.
- Short-term deposits excluding overnight deposits (M2-M1) contracted -0.8% YoY, an improvement from -1.8% YoY in October, contributing -0.3 ppts versus -0.5 ppts previously.
- Marketable instruments (M3-M2) growth increased to 1.6% YoY (Oct: 1.4%), maintaining a small positive contribution of 0.1 ppts to M3 growth.
- Household deposit growth strengthened to 3.3% YoY (Oct: 3.0%), while deposits by non-financial corporations held steady at 3.4% YoY.
- Deposits placed by investment funds decelerated sharply to 0.5% YoY from 2.7% YoY, lowering their support for overall money growth.
- Claims on euro area residents rose to 2.6% YoY (Oct: 2.3%), led by faster growth in claims on the private sector at 3.4% YoY (Oct: 2.9%).
- Adjusted loans to the private sector increased to 3.4% YoY (Oct: 3.0%), with household loan growth at 2.9% YoY and non-financial corporation loan growth accelerating to 3.1% YoY.
Source
Euro area M3 growth held at 2.8% YoY in October 2025, unchanged from September, reflecting stable broad liquidity conditions alongside firmer M1 growth and a continued drag from short-term deposits.
- M1 increased to 5.2% YoY (Sep: 5.0%), contributing 3.3 ppts to M3 growth, indicating stronger momentum in currency and overnight deposits.
- Short-term deposits (M2–M1) contracted -1.8% YoY (Sep: -2.1%), subtracting -0.5 ppts, though the decline moderated compared with the prior month.
- Marketable instruments (M3–M2) slowed to 1.9% YoY (Sep: 4.3%), reducing their contribution to just 0.1 ppts.
- Household deposit growth eased to 3.0% YoY (Sep: 3.2%), while deposits by non-financial corporations accelerated to 3.5% YoY (Sep: 3.1%).
- Investment fund deposits saw a sharp deceleration to 2.1% YoY (Sep: 7.1%), lowering their contribution to overall money growth.
- Claims on euro area residents rose 2.3% YoY (Sep: 2.1%), with claims on government at 0.7% (Sep: 0.6%) and claims on the private sector at 2.9% (Sep: 2.7%).
- Adjusted loans to the private sector increased to 3.0% YoY (Sep: 2.8%), including household loan growth of 2.8% YoY (Sep: 2.6% YoY) and NFC loan growth of 2.9% YoY (Sep: 2.9% YoY).
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Euro area M3 money supply growth eased slightly to 2.8% YoY in September 2025 (Aug: 2.9%), reflecting weaker short-term deposits despite modest support from marketable instruments.
- M1 growth rose to 5.1% YoY (Aug: 5.0%), contributing 3.2 ppts to M3 growth, while short-term deposits (M2–M1) contracted -2.2% YoY (Aug: -1.3%), subtracting -0.7 ppts.
- Marketable instruments (M3–M2) growth accelerated to 4.0% YoY (Aug: 2.2%), adding 0.3 ppts to total M3.
- Household deposits rose 3.3% YoY (Aug: 3.4%), while deposits by non-financial corporations increased 3.3% YoY (Aug: 2.8%), and those by investment funds surged 6.7% YoY (Aug: 2.6%).
- Claims on euro area residents grew 2.1% YoY (Aug: 1.9%), driven by higher claims on government (+0.6% vs +0.1%).
- Adjusted loans to the private sector were stable at 2.8% YoY, with loans to households at 2.6% (Aug: 2.5%) and loans to non-financial corporations at 2.9% (Aug: 3.0%).
- Counterpart contributions showed net external assets steady at +1.7 ppts, while longer-term liabilities remained a drag at -1.0 ppts.
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Euro area M3 money supply growth slowed to 2.9% YoY in August 2025, down from 3.3% YoY in July, reflecting weaker short-term deposits and marketable instruments.
- M1 growth held steady at 5.0% YoY, contributing 3.2 ppts to M3 growth, while M2–M1 deposits contracted -1.4% YoY (Jul: -0.8%) and marketable instruments growth eased to 2.6% YoY (Jul: 6.1%).
- Household deposits rose 3.4% YoY, unchanged from July, while deposits by non-financial corporations increased 2.8% YoY (Jul: 2.7%).
- Deposits by investment funds slowed sharply to 2.6% YoY (Jul: 6.5%), limiting overall momentum in M3.
- Claims on euro area residents decelerated to 1.9% YoY (Jul: 2.1%), with government claims easing to 0.1% YoY (Jul: 0.6%), while private sector claims remained steady at 2.7% YoY.
- Adjusted loans to the private sector grew 2.8% YoY, unchanged from July; household loans edged up to 2.5% YoY (Jul: 2.4%) and loans to non-financial corporations accelerated to 3.0% YoY (Jul: 2.8%).
- On the counterpart side, net external assets contributed 1.6 ppts (Jul: 1.9 ppts), while claims on government dropped to 0.0 ppts (Jul: 0.2 ppts), showing weaker support from public sector flows.
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Euro area M3 money supply growth edged up to 3.4% YoY in July 2025 (from 3.3% YoY in June), supported by stronger M1 growth while marketable instruments slowed.
- M1 growth rose to 5.0% YoY (June: 4.7%), contributing 3.2 ppts to M3 growth, while M2–M1 deposits contracted -0.8% YoY and marketable instruments eased to +6.4% YoY (June: +10.4%).
- Household deposits increased +3.4% YoY (prev 3.3%), and deposits by non-financial corporations accelerated to +2.7% YoY (prev 1.6%).
- Deposits by investment funds fell sharply to +6.3% YoY (prev 13.1%), limiting overall momentum.
- Claims on euro area residents grew +2.1% YoY (prev 2.0%), with government claims accelerating to +0.6% YoY while private sector claims held at +2.7% YoY.
- The growth of adjusted loans to the private sector was 2.8% YoY in July, down from 3.0% YoY in June.
- Adjusted loans to households rose to +2.4% YoY (prev 2.2%), and loans to non-financial corporations edged up to +2.8% YoY (prev 2.7%).
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Euro area M3 money supply growth slowed to 3.3% YoY in June (from 3.9% in May), as decelerating M1 and weaker deposit growth across sectors offset gains in marketable instruments.
- M1 growth fell to 4.6% YoY (May: 5.1%), contributing 2.9 ppts to M3 growth; M2–M1 deposits declined -1.1% YoY and marketable instruments rose 10.4% YoY.
- Household deposit growth slowed to 3.3% YoY (from 3.5%), while deposits by non-financial corporations dropped to 1.5% YoY (from 2.7%).
- The growth of loans to the private sector was 3.0% YoY in June, up from 2.8% YoY in May.
- Adjusted loans to households rose 2.2% YoY (May: 2.0%), and loans to non-financial corporations increased 2.7% YoY (May: 2.5%).
- Claims on the private sector rose 2.7% YoY, while claims on general government slowed to 0.1% YoY.
- Net external assets contributed 2.4 ppts to M3 growth, while longer-term liabilities subtracted -1.1 ppts.
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Euro area M3 money supply grew 3.9% YoY (vs 4.0% YoY) in May, unchanged from April, with stronger M1 growth offsetting declines in short-term deposits.
- M1 rose 5.1% YoY (vs 4.7% in April), contributing 3.2 ppts to M3 growth; short-term deposits (M2-M1) declined -0.1% YoY, and marketable instruments (M3-M2) rose 11.2% YoY.
- Household deposit growth picked up slightly to 3.5% YoY, while deposits by non-financial corporations rose 2.7% YoY; investment fund deposits slowed to 15.4% YoY (from 21.2%).
- Adjusted loans to households rose 2.0% YoY (vs 2.0% YoY expected and 1.9% YoY previously), while loans to non-financial corporations slowed to 2.5% YoY (vs 2.6% YoY previously).
- Net external assets contributed 2.6 ppts to M3 growth; claims on the private sector added 2.4 ppts.
- Total claims on euro area residents increased 2.0% YoY, with claims on general government at 0.6% YoY and on the private sector at 2.5% YoY.
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Euro area M3 money supply increased 3.9% YoY in April, up from 3.7% in March and ahead of expectations of a 3.7% YoY increase, supported by stronger M1 and loan growth.
- M1 (currency + overnight deposits) rose 4.7% YoY in April, up from 3.9%.
- Total private sector loan growth edged up from 2.6% YoY in March to 2.7% YoY in April.
- Household loan growth increased to 1.9% YoY (vs 1.8% YoY expected) up from 1.7% YoY, while loans to non-financial corporations rose to 2.6% YoY up from 2.4% YoY.
- Deposits from non-financial corporations accelerated to 2.6% YoY (from 2.2%), and investment funds' deposits surged to 21.2% YoY.
- Short-term deposits (M2-M1) slowed to 0.6% YoY (from 1.5%), and marketable instruments (M3-M2) eased to 10.8% (from 11.9%).
- Net external assets remained a key contributor to M3 growth at 2.7 ppts, with claims on the private sector contributing 2.2 ppts.
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Euro area M3 money supply increased 3.6% YoY in March, down from 3.9% YoY in February and well below expectations of an increase of 4.0% YoY.
- The deceleration in M3 money supply growth came primarily from a weaker contribution of net external assets, 2.7 ppts in Mar vs 3.1 ppts in Feb.
- The M1 money supply increased 3.8% YoY, up from 3.4% YoY previously.
- Total private sector loan growth was 2.6% YoY, up from 2.4% YoY previously.
- Household loan growth was 1.7% YoY in March, up from 1.5% YoY in February and above expectations of a 1.6% YoY increase.
- Non-financial corporate loan growth was 2.3% YoY, up from 2.1% YoY previously.
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Euro area M3 money supply increased 4.0% YoY in February, up from 3.8% YoY in January (which was revised up from 3.6% YoY) and above expectations of a 3.8% YoY increase.
- The M1 money supply increased 3.5% YoY, up from 2.7% YoY.
- Private sector loan growth was 2.5% YoY in February, up from 2.3% YoY.
- Household loan growth was 1.5% YoY, up from 1.3% YoY and above expectations of a 1.4% YoY increase.
- Non-financial corporate loan growth was 2.2% YoY, up from 2.0% YoY.
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The euro area M3 money supply increased 3.6% YoY in January, up from 3.4% YoY in December but below expectations of a stronger increase of 3.8% YoY.
- The M1 money supply was up 2.7% YoY vs 1.8% YoY previously.
- Total private sector loan growth was 2.3% YoY in January, up from 2.0% YoY in December.
- Loans to households grew 1.3% YoY (vs 1.2% YoY expected), up from 1.1% YoY and the strongest since July 2023.
- Loans to corporations grew 2.0% YoY, up from 1.7% YoY and the strongest since July 2023.
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Euro area M3 money supply growth eased to 3.5% YoY in December, down from 3.8% YoY in November. The narrower M1 money supply increased 1.1% YoY, a slight acceleration from 0.9% YoY. Other components, as short-term deposits (M2-M1) slowed significantly from 6.1% YoY to 4.5% YoY, and marketable instruments (M3-M2) decelerated from 17.0% YoY to 16.3% YoY.

The divergence suggests that shifts into term deposits to take advantage of higher rates are losing momentum as rate cuts start to take effect with more likely coming in the future. Some depositors may be seeking higher yields in other assets, given the large marketable instruments component (M3-M2) is still growing at 16.3% despite slowing.

Adjusted loans to the private sector increased to 2.0% YoY in December from 1.5% YoY in November, with improvements across both major borrowing sectors. Household lending growth accelerated to 1.1% YoY from 0.9% YoY, and corporate lending showed an even stronger pickup, rising to 1.5% YoY from 1.0% YoY. In general, lower rates are having the intended effect of easing credit conditions and a strong acceleration in overall loans suggests economic confidence in the euro area has not capitulated.

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