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54112
Sharp increase in money supply growth
statistikk
2011-02-28T10:00:00.000Z
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, January 2011

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Sharp increase in money supply growth

The twelve-month growth in total money supply (M2) was 6.4 per cent to end-January. This is the highest twelve-month growth since October 2008, and an increase from 5.2 per cent to end-December 2010. The increased growth stemmed from enterprises.

The total money supply amounted to NOK 1 638 billion by end-January, up from NOK 1 611 billion by end-December.

Money supply (M2) - growth

Sharp increase in enterprises’ money supply growth

Non-financial enterprises’ money supply amounted to NOK 558 billion at end-January, up from NOK 542 billion at end-December. The twelve-month growth went up from 5.6 per cent to end-December, to a total of 8.8 per cent to end-January. This is the highest twelve-month growth in non-financial money supply growth since April 2008. Non-financial enterprises’ money supply constituted 46 per cent of their gross domestic debt measured by the credit indicator C2 at end-January.

Other financial enterprises’ money supply amounted to NOK 152 billion at end-January, up from NOK 141 billion at end-December. The twelve-month growth was 3.4 per cent to end-January, up from -1.5 per cent to the previous month.

Decrease in households’ money supply growth

Households’ money supply amounted to NOK 870 billion by end-January, up from NOK 864 billion the previous month. This constituted more than half of the total money supply. The twelve-month growth in households’ money supply was 5.0 per cent to end-January, down from 5.5 per cent to end-December. The growth in households’ money supply was lower than the growth in households’ gross domestic debt, which was 6.5 per cent to end-January, according to the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Municipal government’s money supply growth unaltered

Municipal government’s money supply amounted to a modest NOK 58 billion at end-January, down from NOK 63 billion at end-December. The twelve-month growth was at the same time 14.7 per cent, unaltered from the previous month.

Monetary aggregates, growth (per cent)
 
  August 2010 September 2010 October 2010 November 2010 December 2010 January 2011
 
M0 - 12 mth. -5.7 1.0 -26.6 11.9 -0.6 8.4
M1 - 12 mth. 2.2 2.0 2.4 5.0 6.0 6.1
M2 - 12 mth. 4.2 3.6 4.1 5.7 5.2 6.4
M2 - 3 mth. moving average 8.3 8.3 6.8 6.5 8.0  
M2 households - 12 mth. 4.1 4.6 5.1 5.4 5.5 5.0
M2 non-financial enterprises - 12 mth. 1.1 0.8 1.4 5.4 5.6 8.8
 

Sharp increase in base money growth

Base money amounted to NOK 99 billion at end-January, down from NOK 134 billion the previous month. The decrease is mainly caused by a decrease of bank deposits in Norges Bank during January, but notes and coins in circulation also contributed to the decrease. Despite the decrease in actual level, the twelve-month growth in M0 increased from -0.6 per cent to 8.4 per cent during January. This increase in growth is caused by a larger decrease in January last year than in January this year (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.

 

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