July 27, 2026
Components of the Broader Monetary Aggregate M3
The annual growth rate for the broad currency aggregate M3 increased to 3.3% in June 2026, up from 3.0% in May, with an average growth rate of 3.0% over the three months leading to June. In terms of M3 components, the growth rate for M1, which includes currency in circulation and overnight deposits, decreased to 3.4% in June from 3.7% in May. Meanwhile, the growth rate for short-term deposits (M2-M1), excluding overnight deposits, climbed from 1.4% in May to 2.8% in June. Additionally, the annual growth rate for marketable products (M3-M2) surged from 3.2% in May to 4.5% in June.
If you take a closer look, the narrower total M1 contributed 2.2 percentage points to M3 (down from 2.4 percentage points in May). On the other hand, short-term deposits other than overnight ones (M2-M1) contributed 0.8 percentage points (up from 0.4), while marketable instruments (M3-M2) contributed 0.3 percentage points, an increase from 0.2 percentage points.
Looking through the different holding sectors, the growth rate of deposits from households dropped to 2.6% in June from 2.8% in May. In contrast, deposits from non-financial corporations increased from 4.2% in May to 5.3% in June. Notably, the annual growth rate for deposits from investment funds, apart from money market funds, improved to 1.6% in June, quite a leap from May’s 0.6%.
Equivalent to the Broad Monetary Aggregate M3
As for the annual growth rate of M3 in June 2026, which also takes into account items outside of M3 on the consolidated balance sheets of financial institutions (MFIs), the breakdown of contributions showed that credits to the private sector remained at 3.1 percentage points, unchanged from last month. In contrast, net external assets saw an increase to 2.2 percentage points from 1.9, and credits to the general government slightly rose to 0.1 percentage points from 0.0. However, long-term debt’s contribution shifted to -1.6 percentage points, down from -1.4. There was also a slight increase in the remaining portion of M3’s contribution, shifting from -0.6 percentage points last month to -0.5 in June.
Claims Against Residents of the Euro Area
The total annual growth rate of claims against residents in the euro area for June 2026 was stable at 2.4%, matching the previous month’s rate. Meanwhile, claims against the general government saw a modest rise, moving from 0.1% in May to 0.3% in June. Claims against the private sector stayed the same month-on-month at 3.3% in June.
When looking at adjusted financing to the private sector, the June interest rate remained steady at 3.9%. The annual growth rate for adjusted loans to households saw a small increase to 3.0%, while loans for non-financial corporations stayed unchanged at 4.0%, mirroring the previous month’s figures.
Note:
- The information in this release has been adjusted for seasonal variations and month-end calendar effects unless stated otherwise.
- The term “private sector” refers specifically to non-euro area MFIs and excludes the general government.
- Links provided lead to data that may be updated in future releases due to revisions. The displayed figures are based on the current snapshot of data available.
