The growth of lending in the 17 countries that share the euro continued recent gains during the second month of the year, signaling that credit markets are recovering from the economic crisis, according to The Wall Street Journal. On Friday, the European Central Bank reported that private sector lending in the eurozone grew by 2.6% in February from the previous year, accelerating from the 2.4% annual rise recorded in the previous month. The growth of the M3 broad money supply quickened to 2% from 1.5% previously, and loans to non-financial firms added 0.6% annually, compared to 0.5% the month prior.
The data was a sign to Peter Vanden Houte of ING Bank that “Credit markets are gradually leaving the crisis behind,” although loans to businesses still remain relatively low. Bank lending to households in the region slowed slightly to an annual rate of growth of 3% from 3.1% previously. The figures suggest to Michael Schubert of Commerzbank that “inflationary pressures over the medium term should be contained,” although he added that recent indications from policymakers mean the latest report “is unlikely to deter the bank from raising rates in the near future,” given the central bank’s position that excess liquidity remains in the economy.