Monetary growth in eurozone probably slowed slightly in January: Societe Generale

Quotes from Societe Generale Cross Asset Research:

-In January, M3 growth probably slowed to 3.4% yoy from 3.6% yoy, owing mainly to the base effect. If so, this would be the first slowdown observed since last May.

-However, the 3m M3 growth is set to quicken from 3.1% yoy to 3.4% mom. The recently announced QE programme, due to start in March 2015, should allow the monetary supply to return to its rising trend. 

-On the asset side, the ECB measures have already started to help ease credit supply, and we expect private sector credit to continue to improve gradually. The flow of credit loans to the private sector improved across the board in December.

-Adjusted for sales and securitisation, it rose by €20.1bn in December and by €28.4bn over the past three months, bringing the annual growth rate into positive territory (from -0.2% to 0.1% yoy). We expect another improvement by a few tenths in January.