BANK OF SPAIN GOVERNOR SAYS MONEY GROWTH TOO FAST
Bank of Spain governor Mariano Rubio said
the central bank was worried that money supply was growing too
fast, reflecting excessive internal demand in the Spanish
economy, but added that he was confident recent measures would
succeed in restricting money growth.
    In testimony to the economic commission of Congress, Rubio
said the main measure of money supply, the broad-based Liquid
Assets in Public Hands, grew at an estimated annualised rate of
17 pct in March, the same as in February.
    The bank's target range for growth in this measure in 1987
is 6.5 to 9.5 pct, compared with 11.4 pct last year.
    Rubio said he was aiming for the lower end of the range.
    He added that real GDP growth of three pct in 1986 was due
to a six pct increase in real internal demand and a three pct
real drop in the contribution of the external sector.
    The aim for 1987 was for the same real growth in GDP but a
drop in the internal contribution to 4.5 pct with the negative
component of the external sector trimmed to 1.5 pct, he said.
 REUTER
