The Eurozone's money supply and lending rates have shown minimal growth in January, according to recent data. The M3 annual growth rate was reported at 0.1%, which is below the forecasted 0.3%, matching the previous rate and adjusted from an earlier 0.2% revision. Similarly, loans to households also saw a marginal increase of 0.3%, consistent with the previous period's figures. Additionally, the European Central Bank noted a significant shift in the private sector's behavior, with money moving out of deposits into less liquid assets, and lending to companies declined. This has led to an accelerated shrinkage of M1 by -8.6% year-over-year, while the rise of M3 was halved to 0.1% year-over-year.
OUCH! #ECB money supply shrank in January as private sector moved its money back out of deposits into less liquid assets while net lending to households rose only slightly & lending to comps declined. Shrinkage of M1 has accelerated to -8.6% YoY, Rise of M3 halved to 0.1% YoY. https://t.co/vmNrXCuTki
🔴 EUROZONE LOANS TO HOUSEHOLDS ACTUAL 0.3% (FORECAST -, PREVIOUS 0.3%) $MACRO
🔴 EUROZONE MONEY-M3 ANNUAL GROWTH ACTUAL 0.1% (FORECAST 0.3%, PREVIOUS 0.1%) $MACRO
Eurozone M3 Money Supply (Y/Y) Jan: 0.1% (est 0.3%; prevR 0.2%)
🇪🇺 Europe M3 Money Supply (YoY) (Jan) $EUR Actual: 0.1% 🔴 Expected: 0.3% Previous: 0.1%