Strong growth in money supply
Banking and financial markets
m2, The money supply M2, money, notes and coins, assetsFinancial indicators, Banking and financial markets

The money supply M2April 2008



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Strong growth in money supply

The twelve-month growth in total money supply rose from 11.1 per cent to end-March to 14.0 per cent to end-April. All sectors saw a rise in their money supply growth.

Money supply (M2) - growth

The money supply amounted to NOK 1 444 billion at end-April, up from NOK 1 433 billion at end-March.

Rise in household money supply growth

At end-April more than half (NOK 745 billion) of the broad monetary aggregate was owned by households. The twelve-month growth in household money supply rose from 9.3 per cent to 10.4 per cent during April. Households have been the main contributor to annual growth in money supply for four consecutive months, accounting for about 40 per cent of the growth. The growth in household money supply is a little lower than the growth in household gross debt (10.9 per cent), as shown by the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Increasing growth also for non-financial enterprises

The non-financial enterprise money supply amounted to NOK 496 billion at end-April. This was a small decline to end-March. The twelve-month growth was 11.3 per cent, up from 8.0 per cent to the previous month. The sharp increase in the annual growth to end-April may be a result of both the increase in April this year and the sharp decline in April 2007.

The growth rate has been decreasing since December 2006, when it reached 35.5 per cent.

Monetary aggregates, growth (per cent)
  February 2008 March 2008 April 2008
M0 - 12 mth -3.0 -3.9 10.7
M1 - 12 mth 9.4 6.1 7.6
M2 - 12 mth 15.1 11.1 14.0
M2 - 3 mth mov.avg. 7.6 6.3  

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 444 billion at end-April, of which the major part (89 per cent) consisted of bank deposits. In comparison, notes and coins only accounted for 3 per cent of the broad money. The rest of the broad money consisted mainly of shares in money market funds (7 per cent), while certificates of deposits accounted for 1 per cent.

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 households, non-financial enterprises, municipalities and financial enterprises other than state lending institutions, banks and money market funds.