ECB's M3 money supply beats expectations, rises sharply in Nov

The European Central Bank released Eurozone money supply annual growth data for the month of November earlier on Thursday. Data showed that Eurozone money supply annual growth accelerated sharply in November, defying expectations for a steady pace.

The broad money measure, M3, rose 4.8 percent year-on-year in November following 4.4 percent increase in October and beating economists' expectations for an unchanged pace of growth.

Details showed the narrower aggregate that includes currency in circulation and overnight deposits, grew 8.7 percent in November after an 8.0 increase in October. Lending to households grew by 1.9 percent on the year in November versus 1.8 percent in the previous month. Loans to firms grew by 2.2 percent in November versus 2.1 percent in October, the ECB said.

"The ECB will be pleased to see money supply growth pick up in November after slowing appreciably in October to be at its weakest level since March 2015," IHS Markit economist Howard Archer said.

The European Central Bank is looking forward to strong, above target money supply growth to fuel growth and lift inflationary pressures and will welcome accelerated growth in M3 money supply in November. The data is likely to fuel belief that the ECB is unlikely to make any adjustments to monetary policy for some considerable time to come.