Monetary development in Euro Area declined during April

According to the recent publication of the Euro Area monetary development has declined during April 2011 compared to previous months:  the annual growth rate for M3 declined from 2.3% during March to 2.0% during April 2011.

On the other hand, the annual growth rate of loans to private sector moderately inclined from 2.5% in March to 2.6% in April.

These data imply a moderate drop in the inflation pressures; this might be among the factors that will persuade the ECB to keep the current basic interest rate at its current level of 1.25%.

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