Euro zone money supply growth slows

[Duplex]

Euro zone money supply growth slows
Monday, 28 January 2008 11:12

Growth of euro zone money supply as measured by the broad indicator M3 slipped to 11.5% in December, according to the European Central Bank.

In November, the M3 indicator had stood at 12.3%.

The indicator covers cash, overnight deposits, other short-term deposits, repurchase agreements, shares and units in money market funds and debt securities with a maturity of up to two years.

rte.ie/business/2008/0128/eurozone.html

[yoganmahew]

Only another 10% points to go before we get to neutral! (Or is it 8?)

[kerrynorth]

@yoganmahew

Only another 10% points to go before we get to neutral! (Or is it 8?)

4.5% is the ECB target rate. Is this the first sign of the credit crunch in the real economy? I mean the ECB were throwing money around like a drunken sailor during December!

[Duplex]

The target growth rate for M3 is 4.5% but has exceeded it every month since early 2001.

Need a bit target practice there.

finfacts.ie/irishfinancenews/article_1012394.shtml

[daltonr]

The target growth rate for M3 is 4.5% but has exceeded it every month since early 2001.

Sounds a bit like most peoples target waistline.
And we all know how that particular fight usually works out.
The only way you reach it is when a serious illness sheds the weight for you.

-Rd

[yoganmahew]

@kerrynorth

Is this the first sign of the credit crunch in the real economy? I mean the ECB were throwing money around like a drunken sailor during December!

No:

The annual rate of loan growth to the private sector was at 11.1% in December, unchanged from November.

It’s cash that’s disappeared. Hardly surprising given the “value” that is available in the stock markets! The credit binge continues unabated!