The level of the broadly defined money supply (M3) at the end of June 2000 was virtually the same as at the end of 1999, whereas M3 had increased at an annualised rate of nearly 19% in the second half of 1999.
Moreover, the decline in money supply growth was largely concentrated in cheque and transmission deposits and coin and banknotes, ie in that part of M3 reflecting the transaction demand for money. Growth in bank credit extension, which had moved to single-digit levels in the second half of 1999, remained below 10% in the first half of 2000.