Euro area money supply growth slows in December

The annual growth rate of broad money aggregate M3 decreased to 2.8 percent in December 2025, following 3.0 percent in November.

Over the three months ending December, M3 growth averaged 2.9 percent.

Narrow money aggregate M1, comprising currency in circulation and overnight deposits, saw its annual growth rate fall to 4.7 percent in December from 5.0 percent in November.

Other short-term deposits (M2 - M1) showed an annual growth rate of -0.4 percent, an improvement from -0.8 percent in November, while marketable financial instruments (M3 - M2) declined by 1.0 percent after growing by 1.5 percent.

Deposits from households grew by 3.0 percent, non-financial corporations by 3.4 percent, and investment funds by 4.3 percent.

The annual growth rate of adjusted loans to the private sector in the euro area decreased to 3.3 percent in December, from 3.4 percent in November.

Within this, adjusted loans to private households saw their annual growth rate rise to 3.0 percent in December, up from 2.9 percent in November.

Conversely, adjusted loans to non-financial corporations edged down to 3.0 percent in December, compared to 3.1 percent in the preceding month.

Overall claims on non-MFIs in the euro area also slowed to 2.3 percent.