The ECB’s report on the monetary developments in the euro area revealed that the annual growth rate of broad monetary aggregate M3 decelerated to 9.2 percent in April from an unrevised 10.1 percent in March. Economists had forecast M3 annual growth rate to slow to 9.5 percent in April.

Among the components of M3, the annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, fell to 12.3 percent in April from 13.6 percent in the previous month. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) declined to 0.3 percent in April from 0.9 percent in the previous month. In the meantime, the annual growth rate of marketable instruments (M3-M2) accelerated to 10.6 percent from 7.0 percent in March.

The report also revealed that the annual growth rate of adjusted loans to households rose to 3.8 percent in April from 3.3 percent in March, while the annual growth rate of adjusted loans to non-financial corporations dropped to 3.2 percent down from 5.3 percent in the previous month.