However, we need to be cautious in our assessment of recent monetary developments. On the one hand, in an environment marked by considerable uncertainty, especially in the financial markets, the current high rate of monetary growth reflects a preference for holding relatively safe assets included in M3.
On the other hand, the strong monetary growth may also reflect stimulus from the low level of short-term interest rates. This can be seen from the fact that the most liquid components of M3, i.e. those included in the narrow aggregate M1, have continued to rise at a rapid pace recently.