The euro area's money supply continues to be tight on the back of the ongoing glitches in the financial system following the worst credit crisis of the century. The three month average M3 Money Supply seasonally adjusted declined by 0.1% in March which is still better than the previous and expected 0.2% drop.

On the year, in seasonally adjusted terms, money supply also fell 0.1% inline with expectations, yet slowing the decline from the previous 0.3% drop revised from the originally reported 0.4%. Money supply growth remains subdued as the ECB continues to monitor monetary developments closely, as the aftermath of the credit crisis lingers just at a much lower negativity while as well helping keep inflation at par and inline with the ECB comfort zone.