The ECB’s report on the monetary developments in the euro area revealed that annual growth rate of broad monetary aggregate M3 decelerated to 9.5 percent in August from revised 10.1 percent in July (originally from 10.2 percent). Economists had forecast M3 annual growth rate to stay at 10.2 percent in August.

Among the components of M3, annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, slowed to 13.2 percent in August from 13.5 percent in the previous month. In the meantime, the annual growth rate of short-term deposits other than overnight deposits (M2-M1) eased to 0.4 percent in August from 1.4 percent in the previous month., and the annual growth rate of marketable instruments (M3-M2) weakened to 8.3 percent from 11.4 percent in July.

The report also revealed that annual growth rate of adjusted loans to households was 3.0 percent in August unchanged from July, while annual growth rate of adjusted loans to non-financial corporations stood at 7.1 percent, also unchanged from the previous month.