Euro zone M3 growth accelerates unexpectedly in August to 8.2 pct

Euro zone M3 money supply grew 8.2 pct year-on-year in August, up from a 7.8 pct growth rate in July, the European Central Bank said. Economists polled by AFX News had forecast a slowdown in M3 growth in August to 7.6 pct. The three-month average of the annual growth rate of M3 over the June-August period stood at 8.2 pct, compared with a growth rate of 8.3 pct in the May-July period. Economists were looking for growth rate of 7.9 pct. The figures exclude non-resident holdings of money market fund shares and units, money market paper and short-term debt securities. They are also adjusted for seasonal and end-of-month calendar effects. The annual growth rate of M1, which is the currency in circulation and overnight deposits, fell to 7.2 pct in August from 7.4 pct in July. Loans to the private sector grew 11.3 pct year-on-year in August, up from a growth rate of 11.1 pct in July. Economists had forecast a slower growth rate rate of 11.0 pct.