The M3 measure of money supply in the Euro area grew 7.3 per cent year-on-year in March, down from a year-on-year growth rate of 7.4 per cent in February.
M3 money supply is considered to be a key indicator of inflationary pressures. The M3 figure 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.
The three-month moving average of M3 year-on-year growth rates was 7.5 per cent in the January-March period compared with 7.8 per cent in December-February.
Market consensus for M3 growth was for a 7.1 per cent rise year-on-year and for a 7.5 per cent increase for the three month moving average.
The figures exclude non-resident holdings of money market fund shares and units, money market paper and short-term debt securities. They are also adjusted for seasonal and end-of-month calendar effects.
The European Central Bank said the annual growth rate of M3 still reflects the build-up in liquidity from autumn 2001, caused by the economic and financial uncertainties.
AFP