The money supply M2, March 2007

The broad monetary aggregate M2 amounted to NOK 1 282 billion at end-March. The major part of broad money was bank deposits (above 90 per cent), while notes and coin only amounted to 3-4 per cent. The rest of broad money mainly consists of shares in money market funds (5-6 per cent), while certificates of deposits were less than 1 per cent.

Increasing growth in non-financial enterprise money supply

Non-financial enterprise money supply amounted to NOK 457 billion at end-March. Twelve-month growth was 31.9 per cent, up from 31.4 per cent in the previous month. The growth is still at a high level. Since the beginning of 2006, non-financial enterprises are the (institutional) sector with the highest contribution to the growth in money supply, representing about 2/3 of this growth at end-March. The high growth may be connected with high turnover and profitability in business and industry. As shown by the credit indicator C2 , the growth in enterprise gross debt was also high (21.1 per cent).

Also growth in households money supply increases

Household money supply amounted to NOK 682 billion at end-March. Twelve-month growth in household money supply increased from 6.5 per cent to 7.9 per cent in March. Despite the increase, the growth in household money supply is still considerably lower than the growth in household gross domestic debt (11.9 per cent), as shown by the credit indicator C2 .

For more information about the financial position of households, see the financial accounts in the national account .