M1

M1 is one of the narrow measures of money supply.

The UK definition of M1 is: notes and coins in circulation plus sterling sight deposits by the UK private sector in banks and building societies in the UK.

Sight deposits are sterling deposits that can be withdrawn on demand or have been deposited overnight.

Notes and coins in circulation excludes those held by non-residents, financial institutions and the public sector.

The most important types of money excluded from M1 are: time deposits, foreign currency deposits, non-residents money, public sector holdings and financial institutions' holdings.