Eurozone money supply slows, credit to private sector rises

Brussels, March 25, (dpa-AFX/GNA) - Eurozone money supply grew at a slower pace and the credit to the private sector logged a steady growth in February, data from the European Central Bank showed on Thursday.

The monetary aggregate M3 expanded 12.3 per cent annually, slower than the 12.5 per cent rise in January.

The rate was forecast to remain unchanged at 12.5 per cent.

In three months to February, M3 growth averaged 12.4 per cent.

The narrower aggregate M1, which comprises currency in circulation and overnight deposits, grew 16.4 per cent versus 16.5 per cent in January.

Further, data showed that credit to the private sector grew at a steady pace of 5.1 per cent in February.

Similarly, adjusted loans to the private sector expanded 4.5 per cent, the same rate as seen in January.

Among the borrowing sectors, the annual growth rate of adjusted loans to households stood at 3.0 per cent in February, unchanged from the previous month.

Meanwhile, the annual growth rate of adjusted loans to non-financial corporations improved to 7.1 per cent from 6.9 per cent in January.