Eurozone money supply growth slows in October

FRANKFURT, Nov 28 (AFP): Growth in eurozone money supply, a key indicator of demand in the economy, slowed unexpectedly in October, the European Central Bank said Monday. The M3 indicator rose 2.6 per cent last month, following a gain of 3.0 per cent in September. The ECB had initially estimated the increase in September at 3.1 per cent and analysts polled by Dow Jones Newswires had pencilled in a pick-up in the growth rate for October to 3.5 per cent. The ECB regards the M3 figure as a key guide to inflation pressures and uses it to set interest rates accordingly. The central bank seeks to keep eurozone inflation below but close to 2.0 percent but it stood at 3.0 per cent in October.