26 Mar 2015
Eurozone credit picking up – ING
FXStreet (Barcelona) - Teunis Brosens of ING, reviews the Eurozone money supply data release, noting that eurozone sees a return of positive credit growth after over two years of contraction.
Key Quotes
“Money and credit developments provide yet another sign that the Eurozone economic outlook is brightening. Growth in loans to the Eurozone private sector originated by banks (and adjusted for sales and securitisation) increased 0.6%YoY in February, up from 0.4% the month before.”
“The return of positive credit growth after over two years of contraction is an encouraging sign. As usual in economic upturns, household credit is leading the way, increasing to 1.0%YoY in February. Credit to non-financial businesses is still contracting at –0.4%YoY, but the pace of contraction has been slowing over the past year.”
“Net lending to non-financial corporations looks set to turn positive in a few more months.”
“Eurozone M3-growth accelerates further to 4.0%YoY in February, from a (downwardly revised) 3.7% in January.”
“Worrying about impending inflation at these money growth rates is nonsense; in fact we expect headline inflation to remain negative until the Summer. We’d rather focus on the further pickup in growth of M1 to 9.1%YoY in February (from 8.9% in January).”
Key Quotes
“Money and credit developments provide yet another sign that the Eurozone economic outlook is brightening. Growth in loans to the Eurozone private sector originated by banks (and adjusted for sales and securitisation) increased 0.6%YoY in February, up from 0.4% the month before.”
“The return of positive credit growth after over two years of contraction is an encouraging sign. As usual in economic upturns, household credit is leading the way, increasing to 1.0%YoY in February. Credit to non-financial businesses is still contracting at –0.4%YoY, but the pace of contraction has been slowing over the past year.”
“Net lending to non-financial corporations looks set to turn positive in a few more months.”
“Eurozone M3-growth accelerates further to 4.0%YoY in February, from a (downwardly revised) 3.7% in January.”
“Worrying about impending inflation at these money growth rates is nonsense; in fact we expect headline inflation to remain negative until the Summer. We’d rather focus on the further pickup in growth of M1 to 9.1%YoY in February (from 8.9% in January).”