European Money Supply Growth Accelerates

Today, money supply statistics for both the Euro area and Sweden were released, and in both cases did money supply growth accelerate following interest rate cuts. And perhaps not surprisingly, the acceleration was sharpest in Sweden which had the most radical rate cut. M1 rose 3.2% in the year to December in the Euro area, up from 2.2% in the year to November. In Sweden, the annual growth rate picked up even more, from 3.0% to 5.4%.