European Central Bank said that annual growth rate of broad monetary aggregate M3 decreased to 5.0% in December 2019 from 5.6% in November. Economists had expected a 5.5% increase. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 8.0% in December from 8.3% in November. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) stood at 0.2% in December, compared with 0.3% in November. The annual growth rate of marketable instruments (M3-M2) was -7.2% in December, compared with -1.1% in November.

As regards the dynamics of credit, the annual growth rate of total credit to euro area residents stood at 2.0% in December 2019, unchanged from the previous month. The annual growth rate of credit to general government was -1.8% in December, compared with -1.4% in November, while the annual growth rate of credit to the private sector increased to 3.4% in December from 3.2% in November.

The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan sales, securitisation and notional cash pooling) stood at 3.7% in December, compared with 3.6% in November. Among the borrowing sectors, the annual growth rate of adjusted loans to households increased to 3.7% in December from 3.5% in November, while the annual growth rate of adjusted loans to non-financial corporations decreased to 3.2% in December from 3.4% in November.