Increased money supply growth

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The twelve-month growth in the monetary aggregate M3 was 3.6 per cent to end-January 2019, up from 3.2 per cent to end-December. Households’ growth in M3 was 4.8 per cent to end-January, up from 4.2 per cent the previous month.

Written by: Anita Einarsdottir

The twelve-month growth in households’ money supply was lower than the growth in households’ domestic debt, which was 5.6 per cent to end-January according to the credit indicator C2

The money supply growth for non-financial corporations was 3.3 per cent to end-January, while the growth for municipal government was 3.9 per cent. The money supply growth for other financial corporations was -5.8 per cent to end-January, according to new figures from the Monetary aggregates statistics.

Figure 1. Monetary aggregate M3. Twelve-month growth

Money-holding sector Households Non-financial corporations
Jan. 2013 4.9 6.8 2.1
Feb. 2013 3.8 6.5 -0.5
Mar. 2013 3.8 6.3 -0.5
Apr. 2013 4.1 5.8 1.3
May 2013 6.1 5.9 6
June 2013 4.7 6.0 2.8
July 2013 5.2 5.8 4.3
Aug. 2013 6.1 6.5 8.3
Sept. 2013 4 5.7 4.3
Oct. 2013 4.5 6.1 4.5
Nov. 2013 4.2 6.4 3.1
Dec. 2013 6.1 6.3 5.9
Jan. 2014 5.2 6.3 5
Feb. 2014 5.7 6.4 6
Mar. 2014 5.8 5.8 8.4
Apr. 2014 6.3 6.5 6.2
May 2014 5.4 6.7 3.7
June 2014 6.8 6.2 5.6
July 2014 5.3 6.3 2.9
Aug. 2014 5.9 6.6 3.8
Sept. 2014 6.4 6.6 5.6
Oct. 2014 5.4 6.5 5.2
Nov. 2014 5.7 7 4.3
Dec. 2014 5.5 7.4 4.5
Jan. 2015 5.6 7.2 3.9
Feb. 2015 4.9 7.2 2.1
Mar. 2015 6 6.7 6
Apr. 2015 4.9 6.7 3.6
May 2015 5.7 7.4 6.5
June 2015 4.6 6.3 5.1
July 2015 5.6 6.2 7.5
Aug. 2015 3.5 5.7 1.5
Sept. 2015 4.6 5.8 4.1
Oct. 2015 5.5 6.2 3.3
Nov. 2015 4.1 5.2 3.1
Dec. 2015 3.1 5.1 0.7
Jan. 2016 3.1 5.5 0.6
Feb. 2016 4.4 5.1 5
Mar. 2016 3.6 5.4 0.7
Apr. 2016 5.3 5.8 5.7
May 2016 3.2 4.6 0.6
June 2016 4.6 5.3 2.6
July 2016 4.6 5.8 2.0
Aug. 2016 5.8 5.2 6.9
Sept. 2016 6.8 5.3 8.3
Oct. 2016 6.2 4.9 9.2
Nov. 2016 6.6 5.1 9.3
Dec. 2016 5.4 4.1 8.2
Jan. 2017 6.5 3.1 11.6
Feb. 2017 6.6 3.4 11.6
Mar. 2017 7.4 3.5 15.4
Apr. 2017 7.1 3.6 12.7
May 2017 7.4 3.7 15.5
Jun. 2017 7.1 3.8 15.4
July 2017 7.7 3.2 15.4
Aug. 2017 6.7 3.5 12.7
Sept. 2017 6.4 4 11.8
Oct. 2017 6.7 4.1 11.4
Nov. 2017 6.5 4.1 9.8
Dec. 2017 6.3 4.4 7.7
Jan. 2018 5 3.9 5.7
Feb. 2018 3.6 4.4 2.4
Mar. 2018 3.6 5.3 0.6
Apr. 2018 4 4.5 3.2
May 2018 4.8 4.9 4.2
Jun. 2018 3.9 5.4 2.5
July 2018 3.1 5 1.8
Aug. 2018 3.4 5.3 1.2
Sep. 2018 2.9 5.2 -0.7
Oct. 2018 1.8 4.6 -1.8
Nov. 2018 2.5 4.6 0.8
Dec. 2018 3.2 4.2 2.6
Jan. 2019 3.6 4.8 3.3

More than half of M3 held by households

The monetary aggregate M3 was NOK 2 276 billion at the end of January, up from NOK 2 259 billion the previous month. More than half of M3 is held by households. At end-January this amounted to NOK 1 294 billion, equal to the previous month.

The money supply for non-financial corporations was NOK 749 billion at end-January, up from NOK 728 billion the previous month. The money supply for municipal government and other financial corporations amounted to NOK 96 billion and NOK 137 billion respectively.

Steady composition of the money supply

The composition of the money supply remains steady. Transaction deposits accounted for 90.9 per cent of the total money supply, while other deposits accounted for 7.0 per cent at the end of January. Notes and coins accounted for 1.7 per cent, while repurchase agreements, debt securities and bonds in total accounted for 0.3 per cent of the money supply at end-January.

Method for seasonal adjustment is revised from January 2019

From January 2019 the method and practice for seasonal adjustment is harmonized with guidelines from Eurostat. Seasonal adjusted data is revised from January 2018.

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