Wednesday, April 29, 2015

Flow of credit in the euro zone increases slightly – Reuters Germany

Frankfurt (Reuters) – The bank lending in the euro zone for the first time slightly gained momentum after three years

The financial institutions awarded in March a total of 0.1 per cent more loans to businesses and households than last month, as the European Central Bank (ECB) announced on Wednesday. Reuters poll of experts had, however, expected to stagnate. The last time the lending had increased in March 2012.

Economists were positive. “From our perspective, the data seem to indicate that we now see a trend reversal in lending,” said Christian Lips by NordLB. In it also reflects a first effect of the government bond purchase program of the ECB. “Everything indicates that we are in a cyclical recovery phase.” Citi economist Guillaume Menuet According slowly makes a noticeable easing of lending conditions noticeable.

The ECB had started its securities purchase program in the fall of the Credit flow to be pushed. On March 9, she began also with the large-scale purchase of government bonds. This is to to September 2016 pumped over a trillion euros into the banking system. One objective of the monetary authorities: the financial institutions should reduce their exposure to government bonds and instead lend more to businesses and individuals. In the first seven weeks of the monetary authorities bought already for a total of 85 billion euros of sovereign debt.


The growth is essential for the euro area monetary aggregate M3 stood at 4.6 percent in March. Experts had expected a rise of 4.3 percent. In three-month moving average (January to March) took M3 by 4.1 percent. The monetary aggregate M3 includes, cash, current accounts, short-term money market paper and debt securities up to two years duration. A rapidly growing money supply is regarded as evidence of a potential threat of inflation. Consumer prices were last but declined in the currency area: In March, discounted goods and services by 0.1 percent.


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