Continued interset rate increase

Lending rates has since the low rates during the end of 2005 increased during the first part of 2006 and continues to rise also in June. The yearly increase in money supply, both M1 and M3 continues to decline.

The growth rate for the lending rates for house purchase continue to increase in June

During the last month most of the lending rates has continued to increase. MFI:s lending rates to households for house purchase increased during the month from 3,68 to 3,72 per cent. Since the turn of the year lending rates for house purchase has increased with 0,18 per cent, in December the rate was 3,54 per cent. The volume of MFI:s lending to households for house purchase has since the turn of the year had a constant yearly growth rate at roughly 14 per cent. The housing finance institutions lending rate on new agreements to households for house purchase increased during the last month from 3,30 to 3,50 per cent, and has since December increased by 0,31 per cent. Banks lending rates on new agreements to non-financial corporations has increased from 2,78 per cent in December 2005 to 3,42 percent in June 2006

Money Supply

The annual growth rate of the monetary aggregate M1 which can be described as the publics holdings of bills and coins and the publics on demand–deposits in MFI (Monetary financial institutions) and the government is slowing down and was 6,9 percent in June, compared to 10.4 percent in May. The broad monetary aggregate M3, which in excess of M1 also includes deposits with some restraints, repurchase agreements, shares in money market funds and short term securities is still at a high level. The increase has slowed down compared to previous month and during June the yearly growth rate was 15,2 per cent.

The volume of M3 in June was 1629 billions, an increase with 62 billions during the last month, and M1 increased with 10 billions to a total of 1123 billions during the same period. The increase in M3 is mainly caused by the publics increased holdings of securities issued by MFI:s with period under two years.

Definitions and explanations

Publications

Statistics Sweden, on behalf of the Riksbank, compiles monthly financial market statistics. This statistics are based on the MFI-report. The MFI sector consists of banks, housing finance institutions, finance companies, institutions financed by municipalities and companies and monetary securities companies

More about...

More raphs, tables, time series and information about the method is available at Financial Market statistics.

Next publishing will be

The next press release in this series is scheduled for publication on 2006-08-25

Producer Statistics Sweden Box 24300 SE-104 51 Stockholm, Sweden	Enquiries Kristian Tegbring Tel. Tel. +46-(0)8-506 944 97 E-mail kristian.tegbring@scb.se
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