EZ growth strengthing? - BNP

Analysts at BNP Paribas noted that for the Euro area, the annual growth of M3 is strengthening over a one-year horizon.

Key Quotes:

"In December 2015, the annual growth rate of the broad monetary aggregate M3 has increased over a one-year horizon in the Euro area (4.7% against 3.8% in December 2014). This rise has mainly derived from the dynamism of the overnight deposits outstanding amount (contribution to the annual growth of M3 by 5.6 points).

However, the holding of currency and money market fund shares by the non-banking sector has slightly contributed to this increase (by 0.6 and 0.5 points respectively).

The outstanding amount of deposits with an agreed maturity of up to two years and debt securities issued with a maturity of up to two years have continued to contract (contributions by – 1.4 and – 0.3 points respectively)."

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