Eurozone Private Sector Credit Growth Remains Weak
Eurozone private sector credit continued to increase in March but the pace of recovery remained weak, data from the European Central Bank showed Friday.
Claims on the private sector gained 0.8 percent on a yearly basis, which was slightly faster than the 0.7 percent increase in February.
The adjusted loans to the private sector also grew 0.8 percent following February’s 0.7 percent increase.
Among the borrowing sectors, annual growth in adjusted loans to households eased to 0.2 percent from 0.3 percent. By contrast, loans to non-financial corporations grew at a faster rate of 0.4 after a 0.3 percent rise.
Further, data showed that the broad monetary aggregate M3 advanced 0.9 percent in March, faster than the 0.4 percent rise in February. At the same time, the narrow measure, M1 posted an annual fall of 6.7 percent after a 7.8 percent decrease.
ING economist Bert Colijn said March data shows a subdued recovery in bank lending and money growth. With inflation expectations falling further, today’s data is in line with a start to cautious rate cuts.
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