- Annual growth rate of broad聽聽decreased to 7.6% in July 2021 from 8.3% in June
- Annual growth rate of narrower聽, comprising currency in circulation and overnight deposits, decreased to 11.0% in July from 11.8% in June
- Annual growth rate of聽聽increased to 4.2% in July from 4.0% in June
- Annual growth rate of聽聽stood at 1.7% in July, compared with 1.8% in June
Components of the broad monetary aggregate M3
The annual growth rate of the broad monetary aggregate M3 decreased to 7.6% in July 2021 from 8.3% in June, averaging 8.1% in the three months up to July. The聽聽showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 11.0% in July from 11.8% in June. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) was -1.8% in July, compared with -1.4% in June. The annual growth rate of marketable instruments (M3-M2) decreased to 7.7% in July from 8.6% in June.
Looking at the聽, the narrower aggregate M1 contributed 7.7 percentage points (down from 8.2 percentage points in June), short-term deposits other than overnight deposits (M2-M1) contributed -0.5 percentage point (down from -0.3 percentage point) and marketable instruments (M3-M2) contributed 0.4 percentage point (as in the previous month).
From the perspective of the holding sectors of聽, the annual growth rate of deposits placed by households decreased to 7.3% in July from 7.7% in June, while the annual growth rate of deposits placed by non-financial corporations decreased to 6.9% in July from 8.5% in June. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) decreased to 15.0% in July from 15.5% in June.
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 (), the annual growth rate of M3 in July 2021 can be broken down as follows: credit to general government contributed 4.9 percentage points (down from 5.1 percentage points in June), credit to the private sector contributed 3.5 percentage points (down from 3.6 percentage points), longer-term financial liabilities contributed 0.3 percentage point (as in the previous month), net external assets contributed -0.1 percentage point (up from -0.3 percentage point), and the remaining counterparts of M3 contributed -0.9 percentage point (down from -0.4 percentage point).
Credit to euro area residents
As regards the dynamics of credit, the annual growth rate of total聽聽decreased to 6.0% in July 2021 from 6.2% in the previous month. The annual growth rate of聽聽decreased to 12.4% in July from 13.1% in June, while the annual growth rate of聽聽decreased to 3.4% in July from 3.6% in June.
The annual growth rate of聽聽(i.e. adjusted for loan sales, securitisation and notional cash pooling) stood at 3.0% in July, unchanged from the previous month. Among the borrowing sectors, the annual growth rate of聽聽increased to 4.2% in July from 4.0% in June, while the annual growth rate of聽聽stood at 1.7% in July, compared with 1.8% in June.
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