Eurozone money supply growth accelerated in May and the annual increase in loans to households improved, the European Central Bank said Monday.
The broad monetary aggregate M3 increased by faster-than-expected 4.9 percent on a yearly basis, following a 4.6 percent increase seen in April. It was expected to rise to 4.8 percent.
During three months to May, M3 growth averaged 4.8 percent.
The annual growth rate of loans to households came in at 1.6 percent in May, compared with 1.5 percent in April.
Data showed that the annual increase in credit to general government moved up to 11.1 percent in May, from 10.3 percent in April. Likewise, the increase in credit to the private sector increased to 1.3 percent from 1.1 percent.
At the same time, loans to non-financial corporations improved 1.4 percent after climbing 1.2 percent in April.
The ECB will be fervently hoping that despite the heightened uncertainties facing the Eurozone following the UK's vote to leave the EU, bank lending to businesses and households will be lifted as its substantial March package of stimulative measures are increasingly enacted and kick in, IHS Global Insight Economist Howard Archer, said.
For comments and feedback: editorial@rttnews.com