Banca March: Eurozone money supply continues to contract for the third consecutive month. On Wednesday we learned that the euro zone’s money supply (M3) fell by -1.2% year-on-year in September, a tenth of a percentage point less than in the previous month (-1.3% in August), showing that the effects of the ECB’s official rate hike are being passed on to the money market. Specifically, if we look at the evolution of loans, it is worth noting that credit to non-financial firms entered negative territory in September, falling by -0.4% year-on-year-year. If we adjust for securitisations, this slowdown is confirmed at +0.2% year-on-year compared with +0.7% previously. The biggest decline in loans to non-financial companies was in those of shorter duration (below 1 year). On the household side, loans are also slowing down, growing by +0.8%, two tenths of a percentage point less than in the previous month.
Eurozone money supply continues to contract for third consecutive month
