Brussels, 28/03/2002 (Agence Europe) - Growth of the money supply, one of the key inflation indicators for the European Central Bank, slowed in February in the eurozone with the annual rate of broad M3 money supply growth slowing to 7.4% from 7.9% in January, announced the ECB on Thursday. In a press release, the ECB notes: "The high level of the annual growth rate of M3 continues to reflect the buildup of liquidity in the autumn of 2001, when the economic and financial environment was characterised by great uncertainty", adding that it considers a 4.5% M3 growth rate as consistent with stable prices.
Market watchers said the data showed investors were slowly gaining confidence and moving back into longer-term investment, but the figures would not influence ECB monetary policy in the near term. This is the third month in a row where M3 has dropped, falling by EUR 1 billion from January to February. The three-month moving average slowed to 7.8% from 8.0% in the previous period. The M3 monetary aggregate comprises short-term assets like cash in circulation, short-term deposits and cash.
The next ECB Governing Council meeting is scheduled for 4 April.