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Central Bank of Malta statistics for August
Real estate news By Malta Independent Online
Saturday, October 13, 2007
Broad money (M3) continued to increase robustly, putting on Lm84.4 million, or 2.5 per cent, in August. As a result, its annual growth rate accelerated to 11.7 per cent from 10.0 per cent in the previous month. An increase in the net foreign assets of the banking system and a drop in the other counterparts of M3, in particular, deposits excluded from broad money, drove monetary growth during the month.
Narrow money (M1) contracted by Lm16.1 million, or 1.0 per cent, in August, nearly offsetting the previous month’s increase. In line with recent trends, and reflecting also the impact of the Special Registration Scheme, which was extended for a further month, currency in circulation fell by Lm15.2 million, or 3.8 per cent. At the same time, deposits withdrawable on demand declined marginally as an increase in foreign currency balances belonging to public non-financial companies was counterbalanced by a drop in Maltese lira deposits belonging to private non-financial companies and households. As a result, M1 fell by 2.2 per cent in the year to August, as against a drop of 1.9 per cent in the year to July.
Intermediate money (M2) surged by Lm84.4 million, or 2.5 per cent, in August as the drop in M1 was outweighed by a rise in deposits with an agreed maturity of up to two years amounting to Lm99.9 million, or 5.7 per cent. The latter was mainly attributable to increases in Maltese lira denominated deposits belonging to households and, to a lesser extent, in foreign currency balances held by private non-financial companies. Deposit growth continued to be spurred by higher interest rates offered by banks, which increased investors’ demand for such assets, and by funds deposited under the Special Registration Scheme. Overall, foreign currency deposits in M2 increased by Lm44.7 million, driven by higher balances belonging to both private and public non-financial companies.
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