The annual growth rate for all MFI loans to households amounted to 10.8 percent in December 2007, compared to 11.9 percent the previous month and 12.2 in December of 2006. Of the MFIs' total loan volume to households at SEK 1 963 billion, SEK 1 263 billion went to housing and SEK 135 billion to consumption.
The annual growth rate for household consumption credit from MFIs fell and amounted to 11.0 percent in December, compared to 13.7 percent the month before. Compared to December 2006, when the annual growth rate of household consumption credits amounted to 14.5 percent, the rate has dropped by more than 3.5 percentage points. The annual growth rate on loans for households' housing has also dropped since November when it was 12.0 percent to 11.1 percent in December.
Growth of M3 dropping
After several months of a decline, annual growth increased for the narrow money supply measure M1 from 7.4 percent in November to 8.3 percent in December 2007. Development for the wider measure M3 went in the opposite direction and growth dropped from 20.8 percent in November to 18.4 percent in December, which is still a high growth rate. This is the first time since July that the growth rate of M3 has decreased. The decline is mainly due to a drop in the general public's holdings of securities issued by monetary finance institutes (MFI) with a duration of up to two years. M1 amounted to SEK 1 320 billion in December, compared to SEK 1 275 in November. M3 amounted in SEK 2 097 billion in December.
M1 consists of the public's holding of banknotes and coins as well as demand deposits by the public in MFIs and with the central government. In addition to M1, M3 includes deposits with certain terms, repo transactions, shares in money market funds and short-term securities.