Monetary Developments in the Euro Area: September 2024
Banco de España – News and events
October 25, 2024 08:00
Introduction
The Eurosystem’s monetary policy operations are conducted within a decentralized framework in which the monetary policy decisions adopted by the Governing Council of the European Central Bank (ECB) are implemented by the national central banks (NCBs) of the euro area. The NCBs carry out these operations according to the principle of subsidiarity, whereby each NCB executes, in the territory of its Member State, the Eurosystem’s single monetary policy.
Main Developments
In September 2024, the annual rate of growth of the broad monetary aggregate M3 in the euro area was 5.4%, compared with 4.8% in August 2024. The narrower monetary aggregate M1 grew by 6.7%, compared with 6.2% in August 2024.
The annual growth rate of loans to the private sector (adjusted for loan sales and securitization) was 3.6% in September 2024, up from 3.4% in August 2024. Loans to households increased by 3.0% and loans to non-financial corporations by 4.3%.
The annual growth rate of deposits by households with a maturity up to two years was 5.9% in September 2024, up from 5.7% in August 2024. Deposits by non-financial corporations with a maturity up to two years grew by 4.7%, compared with 4.5% in August 2024.
In September 2024, the euro area’s current account recorded a surplus of €31.0 billion, compared with a surplus of €27.8 billion in August 2024. The surplus on trade in goods widened to €41.3 billion from €37.9 billion, while the surplus on trade in services narrowed to €13.3 billion from €15.0 billion.
Eurosystem Monetary Policy Operations
In September 2024, the Eurosystem conducted the following monetary policy operations:
- Main refinancing operations: Two main refinancing operations were conducted, with a total volume of €144.5 billion. The bids accepted at the main refinancing operations totaled €142.2 billion.
- Longer-term refinancing operations: Two longer-term refinancing operations were conducted, with a total volume of €156.3 billion. The bids accepted at the longer-term refinancing operations totaled €142.8 billion.
- Open market operations: Two open market operations were conducted, with a total volume of €134.3 billion.
Assessment
The Eurosystem’s monetary policy stance remains accommodative. The annual growth rate of M3 remains above the ECB’s reference value of 4.5%, and the annual growth rate of loans to the private sector continues to increase. The current account surplus remains large. These developments suggest that the euro area economy is continuing to recover.
Conclusion
The Eurosystem will continue to monitor monetary developments closely and will adjust its monetary policy stance as necessary to ensure price stability in the euro area.
Monetary developments in the euro area: September 2024
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