- Annual growth rate of broad monetary aggregate M3 decreased to 3.5% in January 2023 from 4.1% in December
- Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to -0.7% in January from 0.6% in December
- Annual growth rate of adjusted loans to households decreased to 3.6% in January from 3.8% in December
- Annual growth rate of adjusted loans to non-financial corporations decreased to 6.1% in January from 6.3% in December
Components of the broad monetary aggregate M3
The annual growth rate of the broad monetary aggregate M3 decreased to 3.5% in January 2023 from 4.1% in December, averaging 4.1% in the three months up to January. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to -0.7% in January from 0.6% in December. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) increased to 15.1% in January from 14.0% in December. The annual growth rate of marketable instruments (M3-M2) increased to 13.3% in January from 11.3% in December.
Looking at the components’ contributions to the annual growth rate of M3, the narrower aggregate M1 contributed -0.5 percentage points (down from 0.4 percentage points in December), short-term deposits other than overnight deposits (M2-M1) contributed 3.4 percentage points (up from 3.1 percentage points) and marketable instruments (M3-M2) contributed 0.6 percentage points (up from 0.5 percentage points).
From the perspective of the holding sectors of deposits in M3, the annual growth rates of both deposits placed by households and deposits placed by non-financial corporations decreased to 3.3% in January from 3.7% in December. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) decreased to 0.1% in January from 3.7% in December.
Counterparts of the broad monetary aggregate M3
As a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), the annual growth rate of M3 in January 2023 can be broken down as follows: credit to the private sector contributed 3.6 percentage points (down from 4.1 percentage points in December), credit to general government contributed 0.6 percentage points (down from 1.1 percentage points), net external assets contributed -0.4 percentage points (as in the previous month), longer-term financial liabilities contributed -0.6 percentage points (down from -0.3 percentage points), and the remaining counterparts of M3 contributed 0.3 percentage points (up from -0.4 percentage points).
Data for contribution of the M3 counterparts to the annual growth rate of M3
Credit to euro area residents
As regards the dynamics of credit, the annual growth rate of total credit to euro area residents decreased to 3.1% in January 2023 from 3.8% in the previous month. The annual growth rate of credit to general government decreased to 1.4% in January from 2.8% in December, while the annual growth rate of credit to the private sector decreased to 3.8% in January from 4.3% in December.
The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan sales, securitisation and notional cash pooling) decreased to 4.9% in January from 5.4% in December. Among the borrowing sectors, the annual growth rate of adjusted loans to households decreased to 3.6% in January from 3.8% in December, while the annual growth rate of adjusted loans to non-financial corporations decreased to 6.1% in January from 6.3% in December.
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