Saturday, 6 April 2013

Monetary Base Plummets, M3 Expands Modestly: Euro area Monetary Base & Money Supply (as of 28.02.2013)

The euro area monetary base dropped at its fastest monthly pace since July 2010 as it fell 6.9% in February compared to January according to the ECB. The base has now shrunk consistently every month since August last year and is now €345.726 billion (19.48%) lower than the all-time high set in June last year and 10.62% compared to same month last year. At some €1.775 trillion, the base still remains high compared to pre financial crisis levels.

Broad money supply as measured by the M3 continues to climb to new highs, reaching more than €9.8 trillion in February. Growing at 2.75% in February, it was however the slowest year on year growth rate since August.

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