Eurozone money supply growth slows

FRANKFURT: Growth in eurozone money supply, a key indicator of demand
in the economy, slowed again in November, according to the European Central Bank.
The M3 indicator rose 2% last month, following a gain of 2.6% in October.
The
slowdown was steeper than expected as analysts polled by Dow Jones
Newswires had been pencilling in growth of 2.5% for November.
The ECB regards the M3 figure as a key guide to inflation pressures and uses it to set interest rates accordingly.
The central bank seeks to keep eurozone inflation below but close to 2% but it stood at 3% in Novem-ber.
Meanwhile,
the rate of growth in eurozone bank loans to the private sector slowed
substantially to 1.7% in November from 2.7% in October, the ECB said.
The central bank cut its benchmark interest rate by a quarter of a percentage point to 1% earlier this month. – AFP