The money supply M2, December 2008

The money supply amounted to NOK 1 505 billion at end-December, up from NOK 1 489 billion at end-November. Apart from April and October, the growth rate decreased through the whole of 2008.

Declining growth for other financial enterprise money supply

The twelve-month growth for other financial enterprise money supply (other than state lending institutions, banks and money market funds) was 2.6 per cent to end-December, down from 29.5 per cent to end-November. This decrease in growth is connected to both the decline in financial corporations’ liquid bank deposits in December 2008 and the rise in these bank deposits in December 2007 (basis effect). Other financial enterprise money supply amounted to NOK 141 billion at end-December, down from NOK 155 billion to the previous month.

Decreasing growth also for non-financial enterprise money supply

Non-financial enterprise money supply amounted to NOK 516 billion at end-December. The twelve-month growth was -4.3 per cent, down from -1.0 per cent to the previous month. This is the lowest twelve-month growth rate since April 1994. Apart from April, the growth rate was decreasing through the whole of 2008, from 21.3 per cent at the beginning of the year. Non-financial enterprise money supply constituted 41 per cent of their gross domestic debt measured by the credit indicator C2 at end-December.

Household money supply pulls up the growth

At end-December, more than half (NOK 796 billion) of the broad monetary aggregate was owned by households. The twelve-month growth in household money supply increased from 7.7 per cent to 8.8 per cent during December. Households have had a stronger annual growth than the annual growth in money supply. The growth in household money supply was higher than the growth in household gross domestic debt, which was 7.1 per cent to end-December, as shown by the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .