Lending growth accelerates in eurozone: ECB

27th September 2010, Comments 0 comments

Growth of lending in the eurozone to the private sector accelerated in August, expanding by 0.8 percent from the volume in July and by 1.2 percent on a 12-month comparison, the ECB said on Monday.

The European Central Bank also said that the money supply, as measured by the key indicator of so-called M3 money, expanded by 1.1 percent in August after growing by 0.2 percent in July.

The ECB regards the M3 money figure as the key guide to pressures likely to affect inflation in about 18 months' time.

It has set a medium-term target for inflation of just under 2.0 percent.

However, owing to the depressive effects of the global economic crisis, it has also been wary of growth of the money supply falling unduly low, which would raise concerns of deflation.

© 2010 AFP

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