The ECB released its monthly monetary developments for May. What stand out are loans and repos:
It is clear that credit to the real economy (households and non-financial corporations) has stalled strongly in May. Households loans are barely growing, while non-financial corporations are repaying loans at a monthly pace of €10bn. Total credit is only positive because general government kept issuing more debt (€32bn) and other residents issued both securities and shares (around €7bn on each category).
A positive event is the substantial increase (especially compared with the strong negative flows of the previous two months) in deposits placed by non-monetary financial intermediaries, both in overnight deposits (€35bn) and repos (€36bn) which can only be helpful for the functioning of the money markets.