Wednesday, 29 May 2013

M1 Money Supply Expands at Fastest Pace since June 2010: Euro area Monetary Base & Money Supply (as of April 2013)

Base Money in the euro area continued to fall in April, dropping 2.57% on March and 23.98% on same month last year according to figures just released by the ECB. The ECB has so far this year therefore done the opposite of the Federal Reserve which is expanding the monetary base aggressively.

The M1 Money Supply expanded 8.6% on April last year, the fastest pace since June 2010. M2 Money Supply grew 0.2% compared to March and 4.2% compared to April last year. M3 Money Supply continues to grow modestly, increasing 2.8% on April last year. All money supply measures are currently at record highs. This has been driven by an increase in the money multipliers as the money base has dropped by 24.84% since the record high from June 2012.

The current year on year (YoY) growth rates for M1, M2 and M3 are all higher than both the 2, 6 and 12 month moving averages signaling a pick up in the growth rates.

Read the ECB news release here.

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