European Central Bank reports stable monetary growth in September 2026

M1: M1 is the narrower monetary aggregate consisting mainly of currency in circulation and overnight deposits. Its annual growth rate slowed to 2.7% in September from 2.9% in August, reducing its contribution to overall M3 growth. M2: M2 is a monetary aggregate that includes M1 plus short-term deposits other than overnight deposits. The September release reports the M2-M1 component rather than a standalone M2 growth rate; growth in that component increased to 4.6% from 4.1% in August. M3: M3 is the euro area's broad monetary aggregate, covering currency and deposits along with other liquid marketable instruments. Its annual growth rate remained at 3.5% in September 2026, unchanged from August, while the composition shifted toward stronger growth in short-term deposits and marketable instruments. Euro area: The euro area is the group of European Union countries that use the euro and whose monetary conditions are overseen by the European Central Bank. In September 2026, broad money growth remained stable while household and corporate loan growth was unchanged from August, indicating continued credit expansion despite tighter lending conditions. households: Households are the private-sector residents whose deposits and borrowing are tracked in euro-area monetary statistics. Adjusted loans to households grew 3.1% year on year in September, matching August, while banks reported tighter terms for consumer and other household lending. non-financial corporations: Non-financial corporations are businesses that produce goods or services rather than provide financial services. Adjusted bank lending to these firms grew 4.2% year on year in September, unchanged from August, although banks reported further tightening of credit terms for new enterprise loans. Money supply: M3 growth was unchanged in September, but the composition became less concentrated in M1 as short-term deposits and marketable instruments grew faster than in August. Monetary policy: The ECB raised its three key interest rates in September 2026, with the increases taking effect during the month. Credit conditions: Euro-area banks tightened overall terms for new enterprise loans in the third quarter, citing higher interest rates and the transmission of earlier ECB rate increases.