Money stats

Press, 27 January 1986, Page 14

Money stats

PA Wellington Growth in the broad monetary aggregate (M 3 is estimated to have been 19.6 per cent for the year to November, 1985, the Reserve Bank announced.

This growth rate is up slightly from the previous month but down from the peak annual growth rate of 23.4 per cent recorded in the year to July, 1985, the bank said.

Seasonally adjusted M 3 growth for November was 1.4 per cent, almost unchanged from the 1.5 per cent increase in October. Private sector credit is estimated to have increased by 24 per cent over the year to November which is up on the 22.2 per cent increase recorded for the year to October.

In seasonally adjusted terms, private sector credit grew by 1.8 per cent in November, after no change in October. The Reserve Bank said that despite this increase, there still appears to have been a general decline in lending growth over recent months. The average monthly increase in private sector credit during the three months to November was less than 1 per cent, compared with an average of around 2.1 per cent for the previous three months. Growth in the narrow monetary aggregate (Ml) for the year to November was 13.6 per cent, well down on the 18.9 per cent growth recorded for the year to October.

The sharp rise in Ml during October was partly explained by the bank strike over that period which resulted in a temporary build up in the level of notes in circulation at the end of the month.

The decline in the growth rate of Ml for the year to November reflects the return to a more normal level of notes in circulation, the Reserve Bank said. The bank also announced that trustee savings bank lending grew by 9.1 per cent

in the year to November, down slightly on the 9.4 per cent growth recorded in the year to October. Deposit growth for the year to November was 11 per cent compared with 13.1 per cent in the year to October. Post Office Savings Bank deposits increased by a provisional 9 per cent for the year to December compared with 11.1 per cent for the year to November.

In seasonally adjusted terms deposits increased 0.8 per cent during December compared with an increase of 2.2 per cent during November.

P. 0.5.8. lending growth, in seasonally adjusted terms, increased 2 per cent during December, compared with an increased of 2.4 per cent during November. Large finance companies received net deposits of $137.9 million in November compared with net deposits of $lll.B million received in October. Over the year to November, total deposits increased by 23.6 per cent up slightly on the 23.4 per cent increase recorded in the year to October.