Norges Bank's credit indicator (C2) rose by 14.4 per cent in the twelve months to end-July, unchanged from end-June. Growth in the three-month moving average for C2 was 14.4 per cent at end-June, up from 13.9 per cent at end-May. C2 is an approximate measure of the size of the gross domestic debt of the public (households, non-financial enterprises and municipalities) in NOK and foreign exchange. Twelve-month growth in credit to households was 12.7 per cent to end-July, down from 12.9 per cent to end-June. Credit to non-financial enterprises increased by 19.7 per cent in the twelve months to end-July, up from 19.4 per cent in the 12 months to the end of the previous month.

The money supply grew by 12.3 per cent in the twelve months to end-July, a decline from 13.0 per cent at the end of June. The money supply consists of notes and coins, bank deposits, certificates of deposit and units in money market funds owned by households, non-financial enterprises and municipalities and financial enterprises other than state lending institutions, banks and money market funds. Twelve-month growth in the household money supply was 4.7 per cent to end-July, down from 5.9 per cent to end-June. The money supply of non-financial enterprises rose by 35.1 per cent to end-July, down from 36.5 per cent to the end of the previous month.

Banks' interest margin declined by 0.03 percentage point in the second quarter of 2006, to 2.26 per cent. The lending rate rose by 0.16 percentage point, to 4.23 per cent, while the deposit rate rose by 0.19 percentage point, to 1.97 per cent, by the end of the quarter. Interest rates on loans from life insurance companies rose by 0.13 percentage point to 4.13 per cent, while the lending rates of mortgage companies rose by 0.15 percentage point, to 3.58 per cent, by the end of the quarter. The lending rate of state lending institutions fell by 0.17 percentage point, to 3.07 per cent, in the same period.