Finance
Monetary developments in the euro area: July 2026
The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purch
FULL ARTICLE · European Central Bank Statistics
- PRESS RELEASE
27 August 2026
- Annual growth rate of broad monetary aggregate M3 stood at 3.4% in July 2026, after 3.3% in June 2026
- Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to 3.1% in July from 3.5% in June (revised from 3.4%)
- Annual growth rate of adjusted loans to households stood at 3.1% in July, compared with 3.0% in June
- Annual growth rate of adjusted loans to non-financial corporations increased to 4.4% in July from 4.0% in June
Components of the broad monetary aggregate M3
The annual growth rate of the broad monetary aggregate M3 stood at 3.4% in July 2026, after 3.3% in June, averaging 3.2% in the three months up to July. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 3.1% in July from 3.5% in June. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) increased to 3.8% in July from 2.8% in June. The annual growth rate of marketable instruments (M3-M2) decreased to 4.2% in July from 4.4% in June.
Chart 1
Monetary aggregates
Looking at the components' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 2.0 percentage points (down from 2.2 percentage points in June), short-term deposits other than overnight deposits (M2-M1) contributed 1.1 percentage points (up from 0.8 percentage points) and marketable instruments (M3-M2) contributed 0.3 percentage points (as in the previous month).
Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 2.6% in July, compared with 2.7% in June, while the annual growth rate of deposits placed by non-financial corporations stood at 5.3% in July, unchanged from the previous month. Finally, the annual growth rate of deposits placed by investment funds other than money market funds increased to 1.8% in July from 1.6% in June.
Counterparts of the broad monetary aggregate M3
The annual growth rate of M3 in July 2026, as a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), can be broken down as follows: claims on the private sector contributed 3.3 percentage points (up from 3.0 percentage points in June), net external assets contributed 2.2 percentage points (down from 2.3 percentage points), claims on general government contributed -0.2 percentage points (down from 0.1 percentage points), longer-term liabilities contributed -1.7 percentage points (down from -1.6 percentage points), and the remaining counterparts of M3 contributed -0.2 percentage points (up from -0.5 percentage points).
Chart 2
Contribution of the M3 counterparts to the annual growth rate of M3
Data for contribution of the M3 counterparts to the annual growth rate of M3
Claims on euro area residents
Chart 3
Adjusted loans to the private sector
Data for adjusted loans to the private sector
Notes:
- Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
- "Private sector" refers to euro area non-MFIs excluding general government.
- Hyperlinks lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.
CONTACT
European Central Bank
27 August 2026
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