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Euro zone corporate lending steps down from post-crisis maximum in December
In December, lending to euro zone companies stepped down from its post-crisis maximum, while a broader indicator of funds, which circle in the European Union, dived against expectations, as data disclosed on Friday.
In December, corporate lending tacked on by 2.9, stepping down from 3.1% in November, while household lending surge turned to be intact, sticking to 2.8%, as the European Central Bank told.
By simply purchasing more than 2 trillion euros worth of debt for the last three years, the ECB has hoped to encourage lending and have inflation rekindled.
While the bank’s efforts have paid off and lending surge is actually demonstrating its best performance since the global financial downtime, it’s still below its pre-crisis level as many financial institutions pressured to have their balance sheets repaired, aren’t willing to lend to the real economy.
The annual surge rate of the M3 measure of money supply, considered by some experts to be a precursor of economic activity, went down to 4.6% from 4.9% in December, confounding expectations for 4.9%.
ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.
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