The ECB’s report on the monetary developments in the euro area revealed that the annual growth rate of broad monetary aggregate M3 accelerated to 5.6 percent in October from unrevised 5.5 percent in September. Economists had forecast the M3 annual growth rate to stay at 5.5 percent in October.

Among the components of M3, the annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, climbed to 8.4 percent in October from 7.9 percent in the previous month. In the meantime, the annual growth rate of short-term deposits other than overnight deposits (M2-M1) dropped to 0.6 percent in October from 1.2 percent in the previous month, and the annual growth rate of marketable instruments (M3-M2) was -2.4 percent, down from -1.1 percent in September.

The report also revealed that the annual growth rate of adjusted loans to households increased to 3.5 percent in October from 3.4 percent September, matching economists’ forecast, while the annual growth rate of adjusted loans to non-financial corporations accelerated to 3.8 percent from 3.6 percent in the previous month.