4423_not-searchable
/en/bank-og-finansmarked/statistikker/m2/maaned
4423
Decreased growth in money supply
statistikk
2011-01-31T10:00:00.000Z
Banking and financial markets
en
m2, The money supply M2, money, notes and coins, assetsFinancial indicators, Banking and financial markets
false

The money supply M2, December 2010

Content

Published:

This is an archived release.

Go to latest release

Decreased growth in money supply

The twelve-month growth in total money supply (M2) was 5.1 per cent to end-December, down from 5.7 per cent to end-November. The decrease in the M2 growth came from municipal government and other financial enterprises.

The total money supply amounted to NOK 1 609 billion by end-December, up from NOK 1 595 billion by end-November.

Municipal government’s money supply growth declined

Municipal government’s money supply amounted to a modest NOK 63 billion at end-December. The twelve-month growth was at the same time 15.5 per cent, a decrease from 17.5 per cent at end-November.

Decreasing growth in other financial enterprises’ money supply

Other financial enterprises’ money supply amounted to NOK 140 billion at end-December, down from NOK 143 billion at end-November. The twelve-month growth was -2.6 per cent to end-December, down from 3.5 per cent to the previous month.

Slight increase in growth for non-financial enterprises and households

Non-financial enterprises’ money supply amounted to NOK 541 billion at end-December and the twelve-month growth was 5.4 per cent, up from 5.3 per cent to the previous month. Non-financial enterprises’ money supply constituted 45 per cent of their gross domestic debt measured by the credit indicator C2 at end-December.

Households’ money supply amounted to NOK 866 billion by end-December, up from NOK 855 billion to the previous month. This constituted more than half of the total money supply. The twelve-month growth in households’ money supply was 5.7 per cent to end-December, up from 5.6 per cent to end-November. The growth in households’ money supply was lower than the growth in households’ gross domestic debt, which was 6.5 per cent to end-December, according to the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Money supply (M2) - growth

Monetary aggregates, growth (per cent)
 
  July 2010 August 2010 September 2010 October 2010 November 2010 December 2010
 
M0 - 12 mth. -31.3 -5.7 1.0 -26.6 11.9 -0.6
M1 - 12 mth. 1.6 2.2 2.0 2.5 5.1 6.1
M2 - 12 mth. 3.1 4.2 3.6 4.1 5.7 5.1
M2 - 3 mth. moving average 8.5 9.6 9.4 7.0 7.0  
M2 households - 12 mth. 4.4 4.1 4.6 5.2 5.6 5.7
M2 non-financial enterprises - 12 mth. -1.6 1.1 0.8 1.4 5.3 5.4
 

High increase in base money (M0)

Base money amounted to NOK 134 billion at end-December, up from NOK 93 billion to the previous month. The increase is mainly caused by an increase of bank deposits in Norges Bank during December, but notes and coins in circulation also contributed to the increase. Despite the high increase in actual level, the twelve-month growth in M0 fell from 11.9 per cent to -0.6 per cent during December. This decrease in growth is connected to a higher rise in December 2009 (basis effect).

The money supply (broad monetary aggregate) M2 consists of notes and coins, unrestricted bank deposits, certificates of deposit and units in money market funds owned by the money-holding sector, i.e. households, non-financial enterprises, municipalities and financial enterprises other than state lending institutions, banks and money market funds.

 

The base money (M0) is defined as banks’ and the money-holding sector's notes and coins and deposits in Norges Bank. Banks’ deposits in Norges Bank comprise current account (sight) deposits and fixed rate (time) deposits (F-deposits), from Norges Bank’s monthly balance sheet.

 

Other financial enterprises include financial enterprises other than lending institutions, banks and money market funds.

Growth based on the three-month moving average is defined as growth in average money supply (seasonally-adjusted figures) in the latest three-month period in relation to the previous three-month period. The growth is adjusted for exchange rate valuation changes and statistical breaks as an annualised figure. The calculation is centred; in other words, the observation is set at the middle month of the latest three-month period.

Tables

Published tables