Monetary developments in the euro area: July 2026

• PRESS RELEASE

27 August 2026

• Annual growth rate of broad monetary aggregate M3 stood at 3.4% in July 2026, after 3.3% in June 2026
• Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to 3.1% in July from 3.5% in June (revised from 3.4%)
• Annual growth rate of adjusted loans to households stood at 3.1% in July, compared with 3.0% in June
• Annual growth rate of adjusted loans to non-financial corporations increased to 4.4% in July from 4.0% in June

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 stood at 3.4% in July 2026, after 3.3% in June, averaging 3.2% in the three months up to July. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 3.1% in July from 3.5% in June. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) increased to 3.8% in July from 2.8% in June. The annual growth rate of marketable instruments (M3-M2) decreased to 4.2% in July from 4.4% in June.

Chart 1

Monetary aggregates

Data for monetary aggregates

Looking at the components' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 2.0 percentage points (down from 2.2 percentage points in June), short-term deposits other than overnight deposits (M2-M1) contributed 1.1 percentage points (up from 0.8 percentage points) and marketable instruments (M3-M2) contributed 0.3 percentage points (as in the previous month).

Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 2.6% in July, compared with 2.7% in June, while the annual growth rate of deposits placed by non-financial corporations stood at 5.3% in July, unchanged from the previous month. Finally, the annual growth rate of deposits placed by investment funds other than money market funds increased to 1.8% in July from 1.6% in June.

Counterparts of the broad monetary aggregate M3

The annual growth rate of M3 in July 2026, as a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), can be broken down as follows: claims on the private sector contributed 3.3 percentage points (up from 3.0 percentage points in June), net external assets contributed 2.2 percentage points (down from 2.3 percentage points), claims on general government contributed -0.2 percentage points (down from 0.1 percentage points), longer-term liabilities contributed -1.7 percentage points (down from -1.6 percentage points), and the remaining counterparts of M3 contributed -0.2 percentage points (up from -0.5 percentage points).

Chart 2

Contribution of the M3 counterparts to the annual growth rate of M3

Data for contribution of the M3 counterparts to the annual growth rate of M3

Claims on euro area residents

The annual growth rate of total claims on euro area residents stood at 2.4% in July 2026, compared with 2.3% in the previous month. The annual growth rate of claims on general government decreased to -0.5% in July from 0.3% in June, while the annual growth rate of claims on the private sector increased to 3.5% in July from 3.2% in June.

The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) increased to 4.1% in July from 3.8% in June. Within the non-financial private sector, the annual growth rate of adjusted loans to households stood at 3.1% in July, compared with 3.0% in June, while the annual growth rate of adjusted loans to non-financial corporations increased to 4.4% in July from 4.0% in June.

Chart 3

Adjusted loans to the private sector

Data for adjusted loans to the private sector

Notes:

• Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
• "Private sector" refers to euro area non-MFIs excluding general government.
• Hyperlinks lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.

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Media contacts 27 August 2026 Table: Annex to the press release on monetary developments in the euro area