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Eurozone money supply slows sharply in April

Staff writer |
Money supply in the euro area slowed sharply in April, although some economists cautioned that the underlying details of the report painted a significantly better picture.

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The rate of growth in the most-widely followed measure of money supply, known by the acronym M3, fell from a year-on-year pace of 5.0% in March to 4.6% in April, according to the European Central Bank.

Economists had anticipated a reading of 5.0%, unchanged from the previous month´s reading.

A sharp drop in the rate of growth of deposits placed by non-financial corporations, from 4.1% to 0.8%, accounted for the bulk of the decline in M3.

The narrowest so-called monetary aggregate, M1, which includes only currency in circulation and overnight deposits, declined from 10.1% in March to 9.7% in April.

On the asset side of the equation, private credit grew by 1.2%, up from 1.1% in the month before, while that extended to general government rose from 10.1% to 10.4%.