The headline rate for Germany's M3 money supply showed a marked slowdown in April, with money supply growth buoyed by lending to the private sector but weakened by monetary capital formation.

The headline M3 rate, which compares annualised M3 expansion with the average level in the final quarter of 1996, showed growth slowed to 6.7 per cent in April from 8.3 per cent in March.

In its statement the Bundesbank said, however, that the level of M3 had remained almost unchanged in April on a seasonally adjusted basis and on average over the month.