Monetary developments in the euro area: March 2025

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 decreased to 3.6% in March 2025 from 3.9% in February, averaging 3.7% in the three months up to March. 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, increased to 3.8% in March from 3.4% in February. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 1.5% in March from 2.0% in February. The annual growth rate of marketable instruments (M3-M2) decreased to 11.3% in March from 18.0% in February.

Data for monetary aggregates

Looking at the components' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 2.4 percentage points (up from 2.2 percentage points in February), short-term deposits other than overnight deposits (M2-M1) contributed 0.4 percentage points (down from 0.6 percentage points) and marketable instruments (M3-M2) contributed 0.7 percentage points (down from 1.1 percentage points).

Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 3.5% in March, compared with 3.4% in February, while the annual growth rate of deposits placed by non-financial corporations decreased to 2.3% in March from 3.0% in February. Finally, the annual growth rate of deposits placed by investment funds other than money market funds increased to 16.2% in March from 8.5% in February.