4327_not-searchable
/en/bank-og-finansmarked/statistikker/m2/maaned
4327
Increased growth in money supply
statistikk
2010-11-30T10:00:00.000Z
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, October 2010

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Increased growth in money supply

The twelve-month growth in total money supply (M2) was 4.3 per cent to end-October, up from 3.7 per cent to end-September. The increase in the M2 growth came from enterprises and households.

Figures in the article were corrected 30 November 2010 at 10.25 am

The total money supply amounted to NOK 1 591 billion by end-October, up from NOK 1 567 billion by end-September. The money supply is the highest ever recorded.

Increased growth in non-financial enterprise and other financial enterprise money supply

Non-financial enterprise money supply amounted to NOK 523 billion at end-October. The twelve-month growth was 1.5 per cent to end-October, up from 0.9 per cent to the previous month. Non-financial enterprise money supply constituted 44 per cent of their gross domestic debt measured by the credit indicator C2 at end-October.

Other financial enterprise money supply amounted to NOK 140 billion at end-October. The twelve-month growth was 6.2 per cent to end-October, up from 5.5 per cent to the previous month.

Money supply (M2) - growth

Rise also in household money supply growth

Households’ money supply amounted to NOK 865 billion by end-October, up from NOK 852 billion to the previous month. This constituted more than half of the total money supply. The twelve-month growth in households’ money supply was 5.3 per cent to end-October, up from 4.6 per cent to end-September. This is the highest twelve-month growth measured for households since October 2009. The growth in households’ money supply was lower than the growth in households’ gross domestic debt, which was 6.3 per cent to end-October, according to the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Monetary aggregates, growth (per cent)
 
  May 2010 June 2010 July 2010 Aug 2010 Sep 2010 Oct. 2010
 
M0 - 12 mth. -22.4 -31.2 -31.3 -5.7 1.0 -26.6
M1 - 12 mth. -0.9 0.3 1.6 2.2 2.1 2.5
M2 - 12 mth. 0.8 2.2 3.2 4.3 3.7 4.3
M2 - 3 mth. moving average 2.4 4.0 8.8 10.1 9.8  
M2 households - 12 mth. 3.4 3.8 4.4 4.2 4.6 5.3
M2 non-financial enterprises - 12 mth. -4.6 -2.9 -1.6 1.1 0.9 1.5
 

Decline in base money

Base money amounted to NOK 84 billion at end-October, down from NOK 106 billion to the previous month. The twelve-month growth in M0 was -26.6 per cent, down from 1.0 per cent to end-September. This decrease is mainly cause by a NOK 23 billion decrease of bank deposits in Norges Bank during October.

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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