Eurozone Lending Picks Up In December
Muhammad Rameez Published January 27, 2017 | 04:15 PM
FRANKFURT AM MAIN, , (UrduPoint / Pakistan Point News - 27th Jan, 2017 ) - Businesses and households in the eurozone borrowed more in December, data released Friday by the European Central Bank showed, suggesting the institution's loose monetary policy is reaching the real economy.
Loans to households grew at 2.0 percent year-on-year in the final month of 2016, correcting for some purely financial transactions -- an increase of 0.1 percentage points over November's figure.
Meanwhile, growth in non-financial corporations' borrowing added 0.2 percentage points to reach 2.3 percent, more than recovering from a slight fall in the pace of growth in November. The ECB will "particularly welcome" the news on business lending, IHS Markit economist Howard Archer wrote, noting that the measure reached a five-year high.
"This provides support to the ECB's claim that its monetary policy measures are working," he went on. The Frankfurt institution has cut interest rates to record lows and buys tens of billions of government and corporate bonds every month.
It has also offered cheap loans to banks conditional on their lending on to households and businesses -- even paying banks to take its money if they pass enough through to the real economy. All its extraordinary monetary measures are aimed at boosting economic activity, driving inflation up towards the bank's target of just below 2.0 percent.
Friday's data will be seen by the ECB as "ongoing evidence that its monetary policy is providing valuable support to eurozone growth and should not be changed any time soon," Archer said. With inflation still sluggish in November, ECB policymakers decided in December to extend mass bond-buying from March to December 2017 -- although the pace will slow from 80 billion Euros ($85 billion) to 60 billion euros per month from April.
Since then, data have shown a steep rise in inflation across the 19-nation eurozone, from 0.6 percent in November to 1.1 percent in December.
Related Topics
Recent Stories
PCB dismisses FICA's claims of unpaid dues in PSL
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 March 2024
Today Gold Rate in Pakistan 28 March 2024
Niger says US to submit plan to 'disengage' troops
Venezuelan opposition registers unknown poll contender after obstacles
Van Aert breaks collarbone, ribs in Flanders fall
Russian attacks kill three as Ukraine calls for more air defence
Climate change is messing with how we measure time: study
Minister discusses bilateral issues with Turkiye Ambassador
Urdu poet Safiya Shamim remembered on birth anniversary
Turbat attack martyr laid to rest with full military honours
Police break up Togo opposition event: AFP journalists
More Stories From Business
-
Pakistan earns US $419m from travel services' export in Jul-Jan
35 minutes ago -
Tokyo stocks drop on ex-dividend day
1 hour ago -
Exchange rates for currency notes
2 hours ago -
Foreign exchange rates
2 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 March 2024
4 hours ago -
Today Gold Rate in Pakistan 28 March 2024
5 hours ago
-
Tokyo shares sink on ex-dividend day
5 hours ago -
Stock markets mostly rise, yen hits 34-year low
14 hours ago -
Asian markets mixed as traders assess latest rally, eye data and earnings
15 hours ago -
Pak-Iran transit trade strengthening through enhanced road-rail connectivity: Ahsan Iqbal
16 hours ago -
Punjab industries minister briefed on PBTE performance
17 hours ago -
Stock markets mostly rise, yen hits 34-year low
17 hours ago