The money supply M2, February 2011

The total money supply amounted to NOK 1 625 billion by end-February, down from NOK 1 638 billion by end-January.

Decrease in non-financial enterprises’ money supply growth

Non-financial enterprises’ money supply amounted to NOK 537 billion at end-February, down from NOK 558 billion at end-January. The twelve-month growth decreased from 8.8 per cent to end-January, to 8.6 per cent to end-February. Non-financial enterprises’ money supply constituted about 45 per cent of their gross domestic debt measured by the credit indicator C2 at end-February.

Rise in the twelve-month growth for other financial enterprises

Other financial enterprises’ money supply amounted to NOK 150 billion at end-February, down from NOK 151 billion at end-January. The twelve-month growth was 4.0 per cent to end-February, up from 3.3 per cent to the previous month. The rise in the twelve-month growth compared to the last month is related to a stronger decrease in money supply from January to February last year than this year (basis effect).

Increase in households’ money supply growth

Households’ money supply amounted to NOK 878 billion by end-February, up from NOK 871 billion the previous month. This constituted more than half of the total money supply. The twelve-month growth in households’ money supply was 5.1 per cent to end-February, up from 5.0 per cent to end-January. The growth in households’ money supply was lower than the growth in households’ gross domestic debt, which was 6.6 per cent to end-February, according to the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Increased growth also for municipal government’s money supply

Municipal government’s money supply amounted to a modest NOK 60 billion at end-February, up from NOK 58 billion at end-January. The twelve-month growth increased from 14.7 per cent to end-January to 16.1 per cent to end-February.

Composition of money supply

The broad money aggregate M2 amounted to NOK 1 625 billion at end-February, of which the major part, 91.8 per cent, consisted of bank deposits. In comparison, notes and coins only accounted for 2.8 per cent. The rest of the broad money mainly consisted of shares in money market funds and certificates of deposits, which accounted for 5.3 and 0.2 per cent respectively.