Eurozone lending grows by 1.2 percent in September: ECB

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Growth of lending in the eurozone to the private sector was steady in September at 1.2 percent on a 12-month comparison, the ECB said on Wednesday.

The revised rate in August was also 1.2 percent, a bank spokesman said.

The European Central Bank also said that the money supply, as measured by the key indicator of so-called M3 money, grew by 1.0 percent in September, slightly less than the rate of 1.1 percent seen in August.

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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