Money supply increases

The twelve-month growth in total money supply (M2) was 2.6 per cent to end-June, up from 1.1 per cent to end-May. The increase in the M2 growth came from enterprises and households.

The total money supply amounted to NOK 1 571 billion by end-June, up from NOK 1 518 billion by end-May.

Increased money supply growth for non-financial enterprises and other financial enterprises

Non-financial enterprise money supply amounted to NOK 496 billion at end-June, up from NOK 489 billion at end-May. The twelve-month growth was -1.8 per cent to end-June, up from -3.9 per cent to end-May. Non-financial enterprise money supply constituted 41 per cent of their gross domestic debt measured by the credit indicator C2.

Other financial enterprise money supply (other than state lending institutions, banks and money market funds) amounted to NOK 140 billion at end-June, down from 144 NOK billion at end-May. The twelve-month growth was 12.0 per cent to end-June, up from 5.2 per cent to end-May.

Increased growth also in household money supply

Household money supply amounted to NOK 867 billion by end-June, and this constituted more than half of the total money supply. The twelve-month growth in household money supply was 3.9 per cent to end-June, up from 3.4 per cent to end-May. The growth in household money supply was lower than the growth in household gross domestic debt, which was 6.2 per cent to end-June, 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)
January 2010 February 2010 March 2010 April 2010 May 2010 June 2010
M0 – 12 mth. -35.1 -48.8 -27.5 -23.5 -22.4 -31.2
M1 – 12 mth. 2.9 2.9 1.8 2.7 -0.8 0.5
M2 – 12 mth. 2.8 2.3 2.5 2.8 1.1 2.6
M2 – 3 mth. moving average 1.5 0.8 1.4 1.3 3.5
M2 households – 12 mth. 3.6 3.8 3.6 4.0 3.4 3.9
M2 non-financial enterprises – 12 mth. 0.3 0.8 -0.3 -0.3 -3.9 -1.8

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 571 billion at end-June, of which the major part, 91.1 per cent, consisted of bank deposits. In comparison, notes and coins only accounted for 2.9 per cent. The rest of the broad money mainly consisted of shares in money market funds and certificates of deposits, which accounted for 5.6 and 0.4 per cent respectively.

Source: Statistics Norway

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